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" i h..: �"ti!t/ � .:; ..•' y�y.: `� � �'.iff�4 ''+ _�_� ct '•� � .:.:�. ..- ..:• �-:;. :� • ._�' � ..� ��---- � A�:.. � ` :.� ` , � � „ � , � � ;�City of B�ngor, Maine ; .. ,. � ; .., :; , .� , . . : Con�prehensive An�ual Finan�cial ileport � � For the Fiscal Year�Ended June 30, 1999 . . :; �y F.. �.: Q ';. . f ;: -..: : ..:. '. . j3S 1 ;: A � � & ��.j �� . R:;. . . ;?. � .' , �. �: .,. , .� ? ."�.; s2�; �., . . ,� � �� ' : w^F' ' . . a , � . � � '.: : ; . # :. r; . <. ♦•� .. . ,_., ...,, ,.� . - � � ' - ` 4- .. " . . i. , _ ,: . ` � ':. � fi � k:� ' . ..� � .. .:.. ..:� . :�. . . , : . .. .. , �:'.. . £ � 3 s:i £ , , ; � = c.'. �- •q ` ;� � �'� � ✓ t 3 � I ,. � ,.; . . k E S A '.;F � � ..... ' 1 .: ��: �;:: h : i .�.:' 4 . x 3y ., . : , � . � �: .: x :. - : . . . .,,.... . �� ;� �� 'J . . ... -::� ��..� . _ : � � ...w � �� 1 . : ::Prepared by: Ronald Heller, �F�nance Director ;t� Debbie Cyr, Deputy Finance Director ' � City of Bangor, Maine Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1999 Table of Contents INTRODUCTORY SECTION E�ibit Page Letter of Transmittal I - 1 Awards and Recognition I - 26 Certificate of Achievement I - 29 Organizational Chart I - 31 Elected Officials and Principal Administrative Off'icers I - 32 FINANCIAL SECTION : �,. Rg�Qr�o_f.Inde��n�ent_Audi�o� .; _ � �.;� �Qrn�i��si�in�c�l�tatem�s_Qv_erv�ew: � ` Combined Balance Sheet - All Fund Types and Account Groups 1 II - 1 Combined 5zatement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds 2 R - 5 � Statement of Revenues, Expenditures, and Changes in Unreserved/Undesignated Fund Balance - Budget and Actual - Budgetary Basis - General Fund 3 II - 6 Combined Statement of Revenues, Expenses, and Changes in Retained Earnings/Fund Baiances - All Proprietary Fund Types and Similar Trust Funds 4 n - � Combined Statement of Cash Flows - All . Proprietary Fund Types and Similar Trust Funds 5 II - 8 Notes to the Financial Statements II - 10 Schedule ��eral Fund: Balance Sheets A-1 II - 38 Statement of Revenues, Expenditures, and Changes in Unreserved/Undesignated Fund Balance - Budget and Actual - Budgetary Basis A-2 II - 39 City of Bangor, Maine Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1999 Table of Contents (Continued) , Schedule Page S,�ecial Revenue Funds• Combining Balance Sheet B-1 II - 42 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances B-2 II - 43 Capital Pto.�ects Fund• Balance Sheets C-1 II - 44 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance C-2 II- 45 Ente ri�e Funds: Combining Balance Sheet D-1 II - 46 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings D-2 II - 50 Combining Statement of Cash Flows D-3 II - 52 Schedule of Revenues, Expenses and Encumbrances Budget and Actual - Budget Basis - Sewer Utility Fund D-4 II - 56 Schedule of Revenues, Expenses and Encumbrances Budget and Actual - Budget Basis - Airport Fund D-5 II - 57 Schedule of Revenues, Expenses and Encumbrances Budget and Actual - Budget Basis - Park Woods Fund D-6 II - 58 Schedule of Revenues, Expenses and Encumbrances Budget and Actual - Budget Basis - City Nursing Facility Fund D-7 II - 59 Schedule of Revenues, Expenses and Encumbrances Budget and Actual - Budget Basis - Parking Fund D-8 II - 60 Schedule of Revenues, Expenses and Encumbrances Budget and Actual - Budget Basis - Bass Park Fund D-9 II - 61 City of Bangor, Maine Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1999 Table of Contents (Continued) Schedule Page_ _ Schedule of Revenues, Expenses and Encumbrances Budget and Actual - Budget Basis - Municipal Golf Course D-10 II - 62 Fund Schedule of Revenues, Expenses and Encumbrances Budget and Actual - Budget Basis - Economic Development Fund D-11 II - 63 Tru�t and�lg�n�y Fund�_ Combining Balance Sheet E-1 II - 64 Statement of Revenues, Expenditures, and Changes in Fund Balance - Expendable Trust Funds E-2 II - 65 Combining Statement of Revenues, Expenses and Changes in Fund Balances - Nonexpendable Trust Funds E-3 II - 66 Combining Statement of Cash Flows - Nonexpendable Trust Funds E-4 II - 67 Statement of Changes in Assets and Liabilities - Agency Funds E-5 II - 68 General Fixed_Assets Accour�t_Group_ " `°" Schedule of General Fixed Assets by Source F-1 II - 69 Schedule of General Fixed Assets by Function F-2 II - 70 Schedule of Changes in General Fixed Assets by Function F-3 II- 71 Other Inf�rmations Assessed Valuation, Commitment, and Collections G-1 II - �� Undesignated Fund Balance Sufficiency Calculation G-2 II - 73 Requ��red_Sup�lementar�Inform�ti�n Year 2000 Compliance � 74 City of Bangor, Maine Comprehensive Annual Financial Report For the Fiscal Year Ended 7une 30, 1999 Table of Contents (Continued) STATISTICAL SECTION Table Page General Governmental Revenues - Budgetary Basis - General Fund Only, Last Ten Fiscal Years 1 III - 1 General Governmental Expenditures - Budgetary Basis - General Fund Only, Last Ten Fiscal Years � 2 III - 3 General Govemmental Expenditures%Other Uses and Revenues/Other Sources - Budgetary Basis- General Fund Only, Last Ten Fiscal Years 3 III - 5 Assessed and Estimated Market Value, Last Ten Fiscal Years 4 III - 7 Property Tax Levies, Collections and Delinquencies, Last Ten Fiscal Years 5 III - 9 Property Tax Rate Components, Last Ten Fiscal Years 6 III - 11 Principal Taxpayers, June 30, 1998 7 III - 12 Computation of Legal Debt Margin, June 30, 1998 • 8 IlI - 13 Ratio of Net Bonded General Obligation Debt to Assessed Value and Net Bonded General Obligation Debt Per Capita, Last Ten Fiscal Years 9 III - 14 Ratio of Annual Debt Service Expenditures for General Fund, General Obligation Bonded Debt to Total General Fund Expenditures, Last Ten Fiscal Years 10 III - 15 Computation of Direct and Overlapping Debt, June 30, 1998 11 III - 16 Direct and Overlapping Debt, Last Ten Fiscal Years i2 III - 17 Revenue Bond Coverage, Last Ten Fiscal Years 13 III - 18 Debt Service Requirements to Maturity - All Bonded Debt, June 30, 1998 14 III - 19 Self Supporting and Tax Supported General Obligation Debt, June 30, 1998 15 III - 20 City of Bangor, Maine Annual Financial uLport For the Fiscal Year Fnded �une 30, 1999 1'able of Contents (Continued) __ Table__ __Pa�e__ Defined Benefit Pension Plan - City and Employee Contributions, La:�t Ten Fiscal Years 16 III - 21 Defined Benefit P�nsion Plan, Unfunded Liability Amortization 17 III - 22 Public School Enrollment, Last Ten School Years 18 III - 23 Educationai Attainment - Persons Age 18 and Over, Calendar 1998 19 III - 24 Employment Composition, Last Ten Calendar Years ZO III - 25 Employr,:ent Data, Last Ten Calendar Years 21 III - 27 Major Employers - Bangor and Bangor MSA, Calendar 1998 � 22 III - 28 Residential and Commercial Building Permits and Bank Deposits, Last Ten Fiscal Years 23 Ill - ?9 Ten Largest Cur;ent Construction Projects, June 30, 1999 24 III - 30 Various Demographic Data, 1990 Census 2� III - 31 Taxable Retail Sales, Last Ten Calendar Years 26 III - 33 Miscellaneous Data 27 III - 34 ;,� ti'kY�. .y.� r�,f.a� j +;, L's��l�.: �;'��`'''3Fr�. .si't�'�'ii'+1�. fa'. i'�%i''s� -�V r' 1 i,: iii- :�f•'t•' 'ss��.�. 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J �-7 , • s•.; . .... ...�... �.. ...�..� .... .nt. /R. `'',�.t. �..z:..,. i . ... ,.. �. CITY OF °� �"° , �, MAINE �� 73 HARLOW STREET BANGOR,MAINE 04401 FINANCE DEPARTMENT rE�.20�/sa5-aaoo Ronald I. Heller Finance �irector December 23, 1999 To the Honorable Chairman, ' Members of the Bangor City Council, and Citizens of Bangor: Enclosed herewith are the City of Bangor's audited financial statements for the fiscal year ended June 30, 1999. In our ongoing efforts to provide greater and more meaningful information to the people of Bangor,yourselves,and other interested parties,we have assembled this Comprehensive Annual Financial Report, or CAFR, the core of which is formed by the City's audited financial statements. As always,we intend that this document give the financial statements more depth, aid in their interpretation, and help the reader identify the issues inherent in the City's financial operations. Responsibility far the accuracy, completeness and fairness of the data and its presentation rests solely with the City of Bangor and,more specifically,with the City's Finance Director and Deputy Director. To the best of our knowledge and belief, this data, its presentation and the context in which it is presented is accurate in all material respects. This CAFR is presented in three sections: ■ The Introductory Section, of which this letter of transmittal is a part, is intended as an overview of the document as a whole. It principally consists of a narrative report on the City's audited financial results for the fiscal year ended June 30, 1999, and contains other general information about the City. ■ The Financial Section is composed of the City's audited general purpose financiai statements, including all notes and schedules for the General Fund, the eight enterprise funds,the various special revenue and fiduciary funds and the two major account groups. This information has been prepazed by City staff, and includes the independent auditor's unqualified opinion. ■ The Statistical Section contains select financial, economic and demographic information,presented variously on either single or multi year bases. City of Bangor,Maine Comprehensive Annual Financial Report For tlie Year Ended June 30, 1999 Introductory Section LOCATION AND BRIEF HISTORY The City of Bangor is situated in eastern Maine, in the south-central section of Penobscot County. It is the County seat and the third most populous of Maine's 22 cities. The City is located approximately 235 miles north-northeast of Boston; 140 miles northeast of Portland, the State's largest city;and appro�mately 76 miles northeast of Augusta,the State Capital. Bangor is the hub of an 11 municipality employment area as well as the commercial and cultural center for eastem and northern Maine; a region that contains more than a third of the State's population. The City occupies approximately 35 squaze miles on the western shore of the Penobscot River, which forms its southeastern border and separates it from the City of Brewer. The Town of Veazie is contiguous to Bangor on its east. The Town of Orono, home of the principal campus of the University of Maine System,forms the City's northeastern border. The Town of Glenburn borders Bangor on the north, the Town of Hermon on the west and the Town of Hampden forms its southern border. Bangor was first settled in 1656, incorporated as a town on February 25, 1791 and as a city on February 12, 1834. During the 1850's, Bangor was the world's leading lumber port and was second only to Chicago in the 1860's to 1870's. In the ensuing years, Bangor has become a major trade, distribution, service and commercial center for the central, eastern and northern portions of the State. ORGANIZATIONAL STRUCTURE The City's present charter dates to 1931, and has been amended several times,most recently by City voters in November, 1995. The City operates under a Council-Manager form of government, with a nine-member Council elected at-large to staggered three year terms, three of which lapse each year. Councilors are limited by City Charter to two consecutive terms. The Council Chair is the City's Mayor,and is elected annually by the Council from its ranks. The Mayor principally presides over Council meetings, makes committee assignments, and acts as the City's spokesperson. The City Manager is the City's Chief Operating Officer, and is appointed by the Council, as are the Assessor, Solicitor and Clerk. The current City Manager has been in his position since 1988. The City's schools are governed by a seven-member School Committee. Like the Council, its members are elected at large to staggered three year terms. Unlike the Council, there is no limit to the number of consecutive terms a member may serve. The School Committee employs the Superintendent of Schools as its Chief Operating Officer. The cunent Superintendent has been in his position since 1987. I-2 City oJBangor,Maine _ Comprehensive Annual Financial Report For the Year Ended June 30,1999 � ' Introductory Section FINANCIAL INFORMATION The Finance Director is the City's Chief Financial Officer and Treasurer. As such, he is responsible for all financial functions, including managing and recording the City's financial transactions, planning for the City's financial needs, prudently investing City funds, identifying and managing financial risk, borrowing funds as authorized by Council action, and performing those tasks assigned by the City Manager pertaining to the City's affairs. The Deputy Finance Director is also the City Auditor. As such, she is most directly responsible for maintaining the City's accounts and records, producing the City's general purpose financial statements and assisting the Finance Director in the performance of his duties. The Finance Department is primarily responsible for establishing and maintaining the necessary internal control mechanisms and structures to assure that City assets are properly collected, accounted for, administered, safeguarded and expended. Under the direction of the Finance Director, the Department consists of the following divisions: ■ Treasury is responsible for the collection, investment and custody of the City's financial resources. ■ Audit is principally responsible for maintaining the City's financial records as they pertain to its assets, liabilities, revenues and expenditures. ■ Tax Collection assures that all taxes due the Ciry are collected. ■ Risk Management mitigates and insures against the inherent risks.of conducting City business. This function is expanded upon under the section entitled Risk Management, further below. ■ Purchasing administers the City's procurement of goods and services and manages its fixed assets. ■ Information Services is primarily responsible for maintaining the City's computers and related systems. The Budgetin�Process The City's budgeting process is structured around its fiscal year,which begins on July 1 st and ends on the following June 30th. The City annually adopts budgets for its general fund and eight enterprise funds through a carefully prescribed process, as described immediately below. The City Charter requires that the City Manager submit a recommended budget to the Council by the second Monday in April. The budget,which must be in balance, contains estimates of(1) all non-tax revenues and receipts expected to be received during the next fiscal year, (2) the I-3 City of Bangor,Maine ComprehensiveAnnual Financial Report For the Year Ended June 30,1999 � . Introductory Section expenditures necessary to support City operations, (3) debt service requirements, and(4)the ta�c levy required to achieve balance between revenues and expenditures. The Council may modify recommended expenditures and the recommended tax levy at its sole discretion. If the Council fails to adopt a budget by July 1 st,the City Manager's proposed budget automatically becomes that fiscal year's budget. In either case, an appropriate property tax levy is established and filed with the City Assessor. � Internal Controls The City employs a full array of internal budgetary controls to assure the proper receipt, custody and disposition of its funds and other assets: These include the requirement of formal Council authorization to accept and expend funds, segregation of duties with respect to disbursements, computer programs that require manual ovemde if payments exceed budget,the use of purchase requisitions, warrants, dual signature requirements, and the like. Independent Audit In addition to the internal controls briefly described above,the City Charter requires that an annual audit be performed by an independent certified public accountant. The firm of Runyon Kersteen Ouellette was selected by the City Council to perform this audit, beginning with the fiscal 1997 statements. The firm's unqualified opinion as to the City's general purpose financial statements is included in the Financial Section. Additionally, the firm performed various tests and procedures to meet the requirements of the Federal Single Audit Act of 1984 and related OMB Circular A-133. The independent auditor's report pertaining to these requirements is received and maintained separately from the audited general purpose financial statements, as are all collateral documents that may result from the annual audit. All such documents are available upon request. Risk Management Overall risk management responsibility fa11s to the Finance Department,which identifies and takes those steps deemed reasonable to ameliorate the foreseeable risks inherent in the normal conduct of City business. Accordingly,the City regulazly purchases commercially available insurance for a variety of identified risks. These include coverages under commercial general liability, auto, property damage,crime and dishonesty and various other policies,each with limits and deductibles deemed prudent and reasonable, given the nature of the risks, the cost of coverage and the City's ability to fund various types and levels of losses. In addition, the City self-insures its workers' compensation program and also purchases excess insurance to limit its financial risk to a maximum of$500,000 per occurrence. Integral to the proper administration of this program is an annual evaluation to assure the adequacy of funding I-4 ` City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30, I999 Introductory Section to at least an 80% confidence level. For the past seven years,the actuarial firm of Liscord, Wazd and Roy has performed this evaluation. Finally, the City engages the services of a risk management/safety consultant on a contractual basis. The consultant's responsibilities include administering the City's insurance programs, identifying safety hazards, assisting City personnel in remedying them,conducting safety training throughout all City departments, and a variety of other related activities. Cash Management Investment authority resides with the Finance Director and Deputy Director, acting in accordance with the City's investment policy. The policy defines the types of investments that may be made, and specifically prohibits investments in so-called "derivative" instniments. It is City policy to invest all available operating cash so as to frrst, preserve City assets; second, assure liquidity and third, earn an optimal market rate of return within these parameters. The City's investment strategy with respect to operating cash is based on the principle of matching maturities to cash flow needs, and is constructed around three time horizons, as described below: ■ Medium term liabilities are due within a one to three year period and are funded by securities maturing on or about the dates when such liabilities mature. Typically, funds for this purpose are invested in essentially risk-free vehicles, such as treasury bonds and notes, and the securities of select government agencies. ■ Shorter term cash requirements are met with appropriately short term maturities, once again matched as to maturity. Securities typically used for this purpose aze treasury bills, as well as treasury notes and bonds maturing on or near the dates when cash will be required. Other short term investments include the obligations of government agencies, both federally guaranteed and otherwise, and occasionally "prime" commercial paper for cash needs within 270 days. ■ Finally, overnight investments are executed through a nightly"sweep"of the City's operating accounts, designed to keep cash as fully invested as possible. Such funds are invested through the City's depository bank in perfected overnight collateralized repurchase agreements, and are insured for up to $2.0 million by The Travelers Group. Investment decisions among fixed income asset classes aze generally made on the basis of relative value at the time the investment is made. Further, the City's portfolio is best characterized as neither actively nor passively managed. Securities iypically remain in portfolio until maturity, unless either liquidated for cash flow reasons or called by the issuer. I-5 � City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30, 1999 Introductory Section FISCAL 1999 RESULTS The accompanying general purpose financial statements detail the City's financial results for the fiscal year ended June 30, 1999. As defined therein,and based upon accepted criteria,the financial reporting entiiy depicted by these statements includes only the City, its departments and its funds. General Fund Status and Results The General Fund is the City's principal operating fund. It provides for general government functions including Assessing,the City Council,the City Clerk's office,Legal,Executive,Human Resources, Finance, Planning, Economic Development, Public Safety, Health and Welfare, Recreation, Public Buildings and Services, and Education. The General Fund also provides funding for other organizations ar;d governments, such as the Bangor Public Library, the Bangor Convention and Visitor's Bureau, Penobscot County and several private schools within the City. It accounts for well over two thirds of the City's total revenues and expenditures,and substantially all its non-enterprise fund revenues and expenditures. Balance Sheet: The General Fund Balance Sheet (Exhibit 1) focuses on the City's liquidity, or those assets and liabilities likely to convert to cash, and be paid within the next fiscal year, respectively. At the end of fiscal 1999 ("FY99"),the General Fund had$17.8 million in assets. Not all of this, however, is expected to become available in fisca12000 ("FY00"). One such exception is $2.9 million of the $3.3 million in amounts due from other funds,which are more properly considered , long term in nature. (As discussed below,the City has setaside approximately $2.9 million in the designated fund balance as a reserve against these amounts.) Additionally, a substantial but indeterminate portion of taxes receivable will likely remain uncollected and be carried over to subsequent years. These amounts are also more properly considered long term in nature. Eliminating these uncertainties, cash and those amounts likely to become cash and thus available for General Fund use during FY00 minimally approximates $12.2 million, representing a $1.8 million, or 17.5% increase from the previous year, when $10.4 million was available. This is predominantly attributable to an increase of$2.6 million in pooled cash and investments offset by decreases of$336 thousand and$447 thousand in non-tax receivables and amounts due from other governments, respectively. Liabilities consist of what the City is, at year end,obligated to pay during the next fiscal yeaz. At fiscal yeaz end,the General Fund showed$6.6 million in liabilities. This number,however,should be adjusted to reflect that the$2.2 million in"deferred revenue"is merely an accounting offset to taxes receivable, and represents amounts owed to, not by the City. (It should be noted that long term debt is not shown in the General Fund Balance Sheet. These amounts are shown in the General Long Term Debt Account Group, and are discussed below under the caption Long Term Debt.) I-6 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30, 1999 Introductory Section The amount by which current assets exceed current liabilities equals net current assets, or working cash. Reflecting the adjustments noted above, at fiscal year end this approximated $7.8 million, up from FY98's $6.2 million. This is the net amount of the General Fund's expendable resources which are expected to be available for operating purposes in the coming year. The General Fund fund balance represents residual assets, or the difference between all General Fund assets and liabilities,and may be viewed as the accumulation of operating surpluses over the years. It has three components: ■ Reserved balances are contractually obligated to be expended in subsequent years and are thus unavailable for other purposes. ■ Designated balances are set aside by the Council for non-contractually obligated expenditures in subsequent years. They may, at Council discretion, be made available for other purposes. . ■ Unreserved/undesignated balances are available, and may be appropriated by the Council for any lawful purpose. It is City policy to target these balances at 7.5% of the previous year's General Fund expenditures, net of debt service. At the end of FY99,unreserved and undesignated balances had increased by$297 thousand to$4.2 million, thus representing 7.3% of General Fund expenditures. This change consists two components, as shown below. Components of Undesignated/Unreserved Fund Balance Chan�es Fisca11999 (Dollars in Thousands) Beginning unreserved/undesignated fund balance $3,945.1 Add: Excess of revenues over expenditures and other uses 1,082.1 Subtract: Amounts appropriated to designated fund balances as reserves a�ainst interfund loans to enterprise funds 785.0 Ending unreserved/undesignated fund balance $4,242.2 Revenues• The General Fund is primarily supported by ta��es, intergovernmental revenues and charges for services. As shown in Schedule A-2, FY99 revenues were just under$62.0 million; an increase of$2.1 million, or 3.6% from FY98. This difference is largely accounted for by an increase of $1.5 million in intergovernmental revenues and $350 thousand in increased charges for services. I-7 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,1999 Introductory Section The proportion of locally generated revenues to the General Fund decreased for the second year in a row,to 71.4%from 72.9%,hopefully portending a favorable trend. General Fund revenues, their respective percentages of total revenues,and both the amount and percentage change between fiscal 1998 and 1999 are shown immediately below. General Fund Revenues by Source FY98 and FY99 (Dollars in'Thousands) � FY98 FY99 FY98/99 Change Revenue source Amount % Rev's Amount % Rev's Amount Percent Taxes $35,069.9 58.6% $35,238.7 56.9% $168.8 0.5% Intergovernmental 16,233.6 27.1 17,733.9 28.6 1,5003 9.2 Charges for services 7,529.1 12.6 7,879.4 12.7 350.3 4.7 Other revenue 1,007.9 1_7 1.124.4 1_8 116.5 11.6 Totals $59,840.5 100.0% $61,976.5 100.0% $2,136.6 3.6% Results in the three most significant revenue categories were as follows: ■ Tax revenues represent the General Fund's principal source of revenue and consist primarily of real, personal property and excise taxes. In FY99, $32.4 million, or 91.9% of tax revenues were derived from real and personal property taxes, an increase of$114 thousand over FY98. Property taxes and related revenue accounted for 51.6% of FY99 revenue, down from 53.4% in FY98. Current collection of property tax revenues continued to improve,yielding 95.74%in the current year, up nicely from 95.56% in FY98. ■ Intergovernmental revenue is composed almost exclusively of State revenue sharing and school subsidies. Overall, intergovernmental revenue increased $1.5 million, or 9.2%from FY98,primarily due to $1.2 million in increased state support to education through higher Medicaid,Title I,special education, and general purpose aid receipts. ■ Charges for services consist of both municipal and school charges, both of which were up over FY98 levels, for a combined gain of$350 thousand, or 4.6%. This increase was predominantly due to an additional$254 thousand in interfund charges flowing to Public Buildings and Services. Ex�enditures• As shown in Schedule A-2, FY99 General Fund expenditures were $59.5 million; an increase of $1.2 million, or 2.0%from FY98. As always, the largest expenditure category was education, at � $31.9 million; an increase of $1.7 million, or 5.7% from FY98. The City portion of FY99 expenditures was $27.5 million, down about $568 thousand, or 2.0% from FY98. Ciiy I-8 City of Bangor,Maine � Comprehensive Annual Financial Report For the Year Ended June 30,1999 Introductory Section expenditures were for public safety; public services; health, welfare and recreation; general government services and other agencies and appropriations. General Fund expenditures,their respective percentages of total expenditures, and both the dollar and percentage change between fiscal 1998 and 1999 are shown immediately below. General Fund Expenditures by Category FY98 and FY99 (Dollars in Thousands) FY9g FY99 FY98/99 Chan�e Department Amount % Exp's Amount % Exp's Amount Percent Education $30,190.9 51.8% $31,926.7 53.7% $1,735.8 5.7% Public safety 10,362.4 17.8 10,326.1 17.4 (36.2) (.4) Public services 7,648.0 13.1 7,321.7 12.3 (326.4) (43) General government 3,454.3 5.9 3,371.2 5.7 (83.1) (2.4) Health,welfare and recreation 2,680.6 4.6 2,651.1 4.5 (29.5) (1.1) Other agencies and apnropriations 3,956.8 6_8 3.863.9 6_5 92. 2.3 Totals $58,293.1 100.0°/a $59,460.7 100.0% $1,167.6 2.0% Notable expenditure categories are as follows: ■ Public safetv expenditures are divided between police and fire services, which, in total, declined by $36 thousand, or .4% from FY98 levels. This was largely attributable to the Police Department having come in some $79 thousand under budget,primarily due to lower overtime payroll and a vacancy that went unfilled for several months. " ■ Public services consist of the engineering, highway, electrical, forestry, sanitation, recycling, waterfront and cemetery divisions. The $326 thousand (4.3%) decrease in expenditures from FY98 is largely attributable to having fflregone approximately $650 thousand in extraordinary FY98 expenditures resulting from the January ice storm. This was partially offset by an increase in solid waste tipping fees of$259 thousand. ■ Other agencies and a�ppropriations include expenditures for County ta�ces,private school subsidies, the Bangor Public Library, the Bangor Convention and Visitors Bureau,and debt service. In aggregate,these decreased by$93 thousand, or 2.3%on a year to year basis, as an increase of$147 thousand in Library support was more than offset by a decrease in tax increment financing payments of$247 thousand. I-9 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30, 1999 Introductory Section Enternrise Fund Results The City operates eight enterprise funds,essentially as business entities. These funds(the financial results of which are detailed in Schedules D-1 through D-3) include Bangor International Airport, the Sewer Utility Fund,the City Nursing Facility,the Parking Fund, Bass Park, Bangor Municipal Golf Course, the Park Woods housing complex and the Economic Development Fund. Together,these eight funds generated$20.7 million in charges for services,and an operating profit, before depreciation,of$5.9 million in FY99. This was down slightly from$21.6 million and$6.4 million,respectively, in FY98. Virtually all this difference is accounted for in the Airport Fund, as detailed below. Bangor International Airport: At $9.1 million, operating revenue at the airport decreased by $876 thousand, or 8.7%. Of this, approximately$507 thousand is due to a change in the accounting treatment of passenger facility charges ("PFC's"),which are reflected in a restatement of last year's ending fund balance. Where PFC's had previously been recognized as revenue,they are now recorded as capital contributions and thus do not flow through the income statement. Operating expenses of$7.1 million(before depreciation and amortization, hereinafter refened to collectively as "depreciation") represented a decrease of$309 thousand, or 4.2% from FY98 levels. Largely as a result of the PFC reclassification,the Airport's operating loss (including depreciation) increased by$593 thousand to($3.3)million,and operating cash flow was$1.5 million,down$2.0 million (56.9%) from FY98. As a result of marking the Airport's $11.7 million investment portfolio to market, interest income declined by$594 thousand. This, in conjunction with the PFC reclassification resulted in a$13 million (53.7%) decline in net income, after adding back depreciation on assets acquired with contributions (hereinafter referred to as "depreciation add back"). At fiscal year end, retained earnings stood at $33.9 million after restatement; cash and equivalents at$5.2 million. Sewer Utility Fund: Operating revenues were up $134 thousand, or 2.2%, increasing to $6.3 million. Operating expenses before depreciation decreased by $75 thousand, or 2.9%, to $2.5 million, resuming a recently-broken trend. Net operating income was $2.4 million, which represented a 12.3%, or $258 thousand increase from FY98. Operating cash flow was $3.7 million, down$72 thousand, or 1.9% from FY98. Net income, after depreciation add back, was $1.4 million, an increase of $243 thousand, or 20.7% from FY98. Retained earnings at fiscal year end were $14.9 million, while cash and equivalents were $3.9 million. I-10 City oJBangor,Maine Comprehensive Annua!Financial Report For the Year Ended June 30, 1999 Introductory Section . . The Fund's large amount of cash, derived from several interlocal agreements regarding the construction costs of the City's secondary wastewater treatment plant, provides stabilization against rate increases which might be necessitated by the capital projects required pursuant to a consent decree with the U.S. Environmental Protection Agency ("EPA"). Because of this, sewer rates have remained unchanged since mid FY96 despite flat to declining usage and increasing debt service requirements. As it has for the past few years, the Sewer Fund operates on a planned cash flow deficit basis, using its reserves to defray a portion of its debt service expenses. Of no sma11 benefit in preserving this cash is the current agreement between the City and the EPA under which the latter matches capital expenditures pursuant to the consent decree on a 55/45 basis, up to a maximum contribution of five million dollars. This has slowed the increase i�n debt service requirements to which the utility had been subject, allowing for the further conservation of cash. Nevertheless, current projections indicate that, as this cash is exhausted,rates may ultimately have to be raised in small increments to cover cash flow deficits projected to begin in about 2005. City Nursing Facilitv: Operating revenue declined $361 thousand (14.0%) to $2.2 million, due to continued low occupancy rates. Operating expenses before depreciation decreased by $83 thousand (2.9%), to $2.7 million. As a result,the net operating loss at the facility grew from $330 thousand to $614 thousand, an 86.2% increase. Operating cash flow was a negative $682 thousand, a major deterioration from last year's negative $290 thousand. The facility's net loss, after depreciation add back,was $434 thousand,bringing retained earnings to a negative $1.1 million. Ending cash and equivalents was minimal, at $13 thousand. In FY99,the facility required both a General Fund subsidy of$184 thousand and an interfund loan of$579 thousand, a significant deterioration from FY98's $205 thousand and $162 thousand, respectively. In addition to annually-appropriated operating subsidies, the nursing facility has, over the years, received cumulative interfund loans(ie. cash flow support)from the General Fund in the amount of$1.4 million. This amount has been fully reserved in the General Fund. A more detailed discussion of the Nursing Facility and the City's plans to remedy its financial and operating results can be found in the Departmental Focus section,presented further below. Parking Fund• As it has since the construction of the Pickering Square garage, the Parking Fund incurred its expected loss, although its operating performance did improve by $51 thousand before giving effect to an operating subsidy of$357 thousand. Operating revenues increased 18.0% to $700 thousand, while operating expenses before depreciation increased 22.4%, to $438 thousand. Despite this narrowing margin, the operating loss before depreciation expense improved by$26 thousand. Net income after both the subsidy and depreciation add back improved from $69 thousand to $105 thousand, accounting for essentially all of the fund's newly-positive retained earnings position. Ending cash and equivalents were $353 thousand; up from last yeaz's $287 I-11 City of Bangor,Maine Comprel:ensive Annua!Financial Report For the Year Ended June 30, 1999 Introductory Section thousand. The General Fund's $357 subsidy,primarily to meet debt service, was down slightly from FY98's $372 thousand. Bass Park: The Bass Park complex generated $1.1 million in operating revenue in FY99, increasing $10 thousand over FY98. Operating expenses before depreciation decreased by$23 thousand,or 1.6%, to just over $1.4 million. Thus, on an operating basis (without depreciation), the complex lost approximately $262 thousand (against a$295 thousand loss in FY98), and overall showed a loss of$64 thousand after a General Fund subsidy of$349 thousand;this versus a net loss,after a$312 thousand subsidy, of$136 thousand in FY98. Year end retained earnings declined to a negative $1.3 million. Ending cash and equivalents was minimal at $9 thousand. On an operating cash flow basis, the complex lost $268 thousand, or $3 thousand more than in FY98. The General Fund was required to provide support in the amount of$515 thousand which consisted of an operating subsidy of$349 thousand and a cash infusion of$166 thousand. This represents a deterioration from FY98,when a total of$345 thousand in General Fund support was required. This additional support was required because of increased capital expenditures at the Facility, a portion of which will be recaptured upon the CiTy's next bond issue. By fiscal year end,the complex had accumulated$1.5 million in cash flow loans from the General Fund. As is the case with the City Nursing Facility,this amount has also been fully reserved. Also like the City Nursing Facility, efforts continue to improve the complex's financial performance. These have been previously described in the City's 1997 CAFR in the Departmental Focus section. Municipal Golf Course: The golf course continues to be extraordinarily popular to the residents of Bangor and surrounding communities. Accordingly it continues to operate at a surplus,on both a net income and cash flow basis. At $722 thousand, operating revenues were up 4.4%, or$30 thousand over last year, and operating expenses were $341 thousand, down .8%, or$3 thousand from FY98. Operating income was $306 thousand; up from $275 thousand in FY98. Net income was $331 thousand,and operating cash flow was$421 thousand,up from last year's results of$288 thousand and$345 thousand,respectively. Ending retained earnings were$1.6 million;cash and equivalents were $427 thousand. In accordance with City policy, $165 thousand, or half of the golf course's net income (not its cash)was transferred to reserved retained earnings for future improvements. Park Woods Complex: Net income after the depreciation add back was$21 thousand,after giving effect to a$15 thousand operating subsidy from the General Fund. In FY98, net income (after the add back) was $34 thousand,including a General Fund subsidy of$39 thousand. Netting out the subsidy from both numbers, the Fund's performance improved slightly year over year. Operating expenses before depreciation decreased by$21 thousand, to $251 thousand. Net operating cashflow improved to I-12 City of Bangor,Maine Comprehensive Annual Financial Report • For the Year Ended June 30, 1999 Introductory Section � a negative$5 thousand from negative $10 thousand in FY98. Retained earnings closed the year with a$59 thousand deficit; cash and equivalents were minimal at under one hundred dollars. Economic Development Fund: In FY99,this fund generated$231 thousand in operating revenue,up$57 thousand,or 32.5%over FY 98's results. T'his was due to increased lease payments received on it various properties. Its operating expenses before depreciation were $63 thousand, down $6 thousand, or 8.1%; net operating income was$136 thousand,up substantially from FY98's$77 thousand. Cash flow from operating activities was $160 thousand, also up substantially from FY98's $103 thousand. Retained earnings at year end was$324 thousand;ending cash and equivalents was$214 thousand. LONG TERM DEBT As shown in Section III, Note 9, at fiscal year end the City had long term debt totaling $67.8 million; $62.9 million of which is of the full faith and credit, general obligation variety. Of this, $32.1 million,or 51.1%is fully self-supporting,and is paid from user charges from the wastewater treatment plant. Most of the balance of this debt is for schools($12.0 million)and the General Fund($9.3 million). Smaller amounts are attributable to those funds which require General Fund support and thus must carry the City's full faith and credit pledge. These include the Parking Fund ($3.9 million),the Economic Development Fund ($3.6 million), Bass Park ($1.3 million), and the City Nursing Facility ($762 thousand). The City is also responsible for its proportionate share of the debt incurred by Penobscot County and Maine Vocational Region Four. At year end, the City's portions of this debt were $740 thousand and $74 thousand, respectively. During FY99, the City issued $6.2 million in new general obligation debt ($807 thousand attributable to the General Fund), and retired $5.0 million($930 thousand of which was General Fund debt) . General obligation debt service payments due in FY00 aggregate to$7.9 million,$2.8 million of which represents interest. The City's general obligation debt has carried a Moody's "Aa3" rating since February, 1999. DEPARTMENTAL FOCUS: BANGOR CITY NURSING FACILITY The City owns and operates, as one of its eight enterprise funds, a health care facility for the benefit of its sick and elderly citizens. Beginning as "the poor farm" in the late 19th century, the Facility has evolved over the years into a 61-bed nursing facility, accommodating the elderly and infirm with a mix of both skilled and semi-skilled nursing services. As further preface, it is I-13 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30, 1999 Introductory Section appropriate to state that the care rendered at the Facility is, and always has been recognized as among the best available to area residents. Since the mid-1960's the Bangor City Nursing Facility, as it is currently known,has been housed in a former Air Force building on the grounds of what had previously been Dow Air Force Base. Although it had periodically been self-supporting, in recent years the facility's financial fortunes have taken a profound downward turn,requiring ever-increasing subsidies and cash flow support from the General Fund. Since FY95, such support has been as follows: General Fund Su�nort to the Bangor City Nursing Facilitv FY95 through FY99 (Dollars in Thousands) AnuroQriated Additional Cash Total General Fiscal Year Subsidv Flow Support Fund Su�nort 1995 $67.7 $20.1 $87•8 1996 183.6 13.4 197.0 1997 155.9 279.4 435.3 1998 204.8 162.0 3gg•g 1999 184.4 579.0 763.4 Totals $796.4 $1,053.9 $1,850.3 Thus, the Facility has received almost $1.9 million in General Fund support over the past five fiscal years. Although occupancy trends have recently become more favorable, the City has budgeted $623 thousand in additional support for FY00. Realizing that the often deliberate workings of municipal government are ill-suited to managing a health care facility,the City has, during this period of financial stress in the Furid, attempted to limit its financial risk with respect to the Facility. Such attempts have included putting both the Facility's management and the Facility itself out to bid, exploring joint venture possibilities with other local health care providers, and engaging several consultants to help stem the losses. Thus far,these efforts have largely been ineffective. Several factors have impacted both the Facility's performance and the City's inability to limit its losses. Among these aze the effects of State Medicaid legislatior�and regulations which have both constricted the Facility's market and limited its reimbursement for those residing there; the need for continuing improvements to an aging, less-than-optimally designed physical plant; and rapid management turnover(there have been four administrators in the past four yeazs, as well as two substantial periods of time under an interim administrator). Finally, but by no means unimportantly,the question of continued Facility operation is a highly emotional and political topic which,when raised, invariably results in significant community controversy. Against this backdrop, in late 1997 the City Council decided to implement the recommendations made by Baker,Newman and Noyes, a consultant retained to develop programmatic changes that I-14 City of Bangor,Maine Comprehensive Annual Financia!Report For the Year Ended June 30,1999 Introductory Section might alter the Facility's financial performance. Those recommendations called for the City to convert a portion of the current nursing beds to residential care at a capital eost of approximately $425 thousand. In addition,the Council directed that the Facility be divested and"spun off'into a not-for-profit entity, effectively removing it from the City's chart of accounts. Accordingly, in February, 1999 the City included in its annual bond issue the funds necessary to make these changes. It was felt that, in the final analysis,the relatively greater market demand for residential care would more easily fill the Facility's beds. This,combined with the lower intensity of care required by such residents,would outweigh the lower reimbursement rates received by the City. In the intervening months, a new administrator has been retained, and census at the Facility has increased dramatically. In light of this, the City Council has had occasion to revisit Facility operations yet again. In doing so,the Council both reaffirmed its intention to divest itself of the Facility as described earlier, and held in abeyance implementation of the residential care conversion until a new board of directors has been seated. In an effort to maximize its chances of success after divestiture, the City intends to retain several of the Facility's fixed costs for itself. These are expected to include, at a minimum, existing debt service and a portion of accrued retirement benefits,currently aggregating$225 thousand per year. Additionally,it is quite likely that the City will need to provide some form of continuing operating subsidy to the new entity for some as yet undetermined period. It is management's opinion that such actions,while not without substantial costs, will ultimately allow for better management of the business risks associated with this venture. As to the use of the$425 thousand in bond proceeds,these have and will be reallocated to physical plant improvements required under various licensing and accreditation standards. ECONOMIC BASE, CONDITION AND OUTLOOK Bangor is a commercial, industrial and residential community that serves as a hub for a large geographic region. The City's land area includes tracts of forest and farm lands, open space and riverfront areas,and a developed downtown business district. Lazge portions of the City are as yet undeveloped, and can accommodate significant future growth. The City today reflects both its Native American and logging heritage along the banks of the Penobscot River and its tributaries. Largely as a result of its location, Bangor has been a regional center and gateway to eastern,central and northern Maine since its earliest settlements. For nearly 400 years, Bangor has been the destination and home of explorers, trail blazers, and fortune seekers. First settled as a frontier outpost, the vast richness of the region's forests attracted investors, entrepreneurs, and laborers to Bangor in the early 1800's. By 1870, Bangor was the lumber capital of the world, with a billion boazd feet shipped from its docks annually. I-15 City ojBangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,1999 Introductory Section Today, Bangor thrives with innovative businesses that have achieved regional, national and international success. The City is the economic, educational,recreational,distribution, and health care center for the central, eastern and northern Maine regions. Bangor also serves as northern New England's economic link to the Canadian Maritimes and Eastern Quebec. The City is a major center for the communication,banking, commercial, industrial, and governmental sectors in the State. The City is committed to preserving its viable economic base while creating new opportunities for future economic growth. To achieve these objectives,the City is proactive in supporting economic activity through planned capital improvements, innovative financing, and aggressive mazketing. Infrastructure and Su�port Services Bangor's e�ctensive array of support services and infrastructure help greatly in maintaining existing businesses and broadening economic growth opportunities. Bangor enjoys excellent access to New England and U.S. markets via the Interstate Highway System, and a network of State highways. Transportation alternatives are numerous and competitive,with two railroads and thirty-four major trucking companies providing overnight service from Bangor to points along the Eastern Seaboard. Bangor International Airport (BIA) connects the community to the rest of the U.S. and foreign markets. BIA provides international overnight shipping services via the U.S. Postal Service's Express Mail,Federal Express,Airborne Express,and United Parcel Service. The airport has long been nationally recognized as a successful military base conversion, and now represents approximately 10% of the region's total economic activity. Almost parenthetically, BIA has the second longest civilian runway on the East Coast, and is an alternative landing site for NASA's Space Shuttle missions. Bangor is served by a full and technologically advanced complement of utilities that supports the economic base of both the City and the region. Bangor is one of the two major telecommunication hubs that Bell Atlantic has established in Maine. Accordingly,the City is the connecting point far much of the more than 65,000 miles of fiber optic cable currently in place. Further, Mid Maine Communications has extended its fiber optic network from Bangor both south to Portland and into northern Maine, and is servicing much of the City, including its commercial and industrial parks. These facilities provide the necessary infrastructure to address the unique demands of the community and future enterprises. With four hospitals, Bangor is a regional center for health care services. With four commercial ' and 1 public television station, 12 radio stations and New England's 4th largest daily newspaper, Bangor is also the media hub for the northern and eastern part of the State. The Bangor region is also central Maine's center for higher education and reseazch. The University of Maine System's flagship campus is located in Orono, eight miles to the west, and the City proper is home to five other institutions of higher learning; Husson College,University College I-16 City of Bangor,Maine Comprehensive Annual Financial Report Fo�the Year Ended June 30,1999 Introductory Section of Bangor,.Beal College,Eastern Maine Technical College,and the Bangor Theological Seminary. Over fifteen thousand students attend these institutions. Current Economic Conditions Bangor has a stable and diverse economic base. Major employers include a diversified mix of health care, educational,professional,retail,manufacturing, and governmental entities. In 1998, the Bangor region had a workforce of 53,480. The largest employment sectors were services (16,434 employees), wholesale and retail trade (13,977), and government (11,768). Bangor residents accounted for 17,477 employees in the 1998 regional labor force. Bangor's 1998 unemployment rate of 3.6% was substantially improved over the 1997 rate of 4.8%, indicating strong employment opportunities for Bangor's residents. Another indicator of economic vitality is building permit activity. In calendar 1998, the City issued a total of 507 building permits with an indicated value of$41.1 million, 27.2%higher than calendar 1997's $323 million,and 37.1%higher than the prior ten-year average of$30.0 million. Bangor is the second largest retail market in Maine, after Portland. Taken together, the Bangor Mall,Airport Mall,Broadway commercial center,Union Street commercial center,and the Bangor Center Development District have long established Bangor as the regional hub of the eight-county eastern Maine retail market. Bangor's retail sector serves an extensive geographic area with a population exceeding 3.1 million in eastern Maine and the Canadian Maritimes. Bangor's 1998 taxable retail sales were $878 million, representing a 7.6% increase from the prior yeaz. Indeed,with less than three percent of the State's population, Bangor's share of the State's retail sales has consistently been in excess of 7%since 1988. Over the same period, Bangor's share of County sales has grown significantly, to just under 60%. Recent New Development Bangor continues to enjoy a stable economy with strong retail and service components. Indeed, the ten largest development projects in 1998-99�vere for retail sales and professional services. The Bangor Mall area continued its commercial development apace, with seven major projects in the past year that added another 155,000 square feet of retail space representing almost$10 million in private investment. Additional facilities were also added to Bangor's health care and public housing base as well. The largest of these was at Eastern Maine Medical Center, which constructed a 740 space parking garage and 33,850 square foot ambulatory care unit at its main campus on State Street at a cost of$7.1 million. Other development activity included Acadia Hospital's 2,000 square foot addition and the Bangor Housing Authority's construction of a 9,400 square foot day care center. Development at and in the vicinity of the Bangor International Airport continued with expansions in and azound the airport, in the Maine Business Enterprise Park and BIA Commercial Industrial I-17 � City of Bangor,Maine � Comprehensive Annual Financial Report For t/ie Year Ended June 30,1999 Introductory Section Park. Of some importance is the recently announced partnership between Telford Aviation and The Ages Group,a division of Volvo Aero. In a venture that will result in significant new activity at Bangor International Airport, Ages will transfer$50 million of spare aircraft parts inventory to Telford, an aircraft installation, testing, repair and maintenance firm which established its operations in Bangor seven years ago. Telford will act as a distributor for Ages,which will result in much higher levels of aircraft repair in Bangor, providing an additional 35 highly skilled jobs at BIA. To accommodate this new activity, BIA will build a 15,000 square foot addition to existing buildings now being leased to Telford. Other significant development at and in the vicinity of Bangor International Airport included a 23,500 square foot expansion by Bangor Savings Bank in the Maine Business Enterprise Park. Also,Unicel recently opened a 35,650 square foot Maine corporate headquarters building in the BIA Commercial Industrial Park. Finally, the City has constructed a new hangar facility to accommodate the growing fleet of private corporate aircraft using the Airport. ONGOING INITIATIVES The City has both long and short term projects and initiatives. Many of the projects identified in the City's two previous CAFR's continue. As these are either completed or become more routinized, new priorities are identified and pursued. All else equal,however,there aze really two principal priorities for the City: redevelopment of the downtown business district and the waterfront. Downtown Redevelopment Perhaps the most significant accomplishment in the past year is the enhancement of the economic vitality of the downtown area. In recent years the City has been plagued with a number of large vacant buildings in its downtown. As the retail sector shifted to the City's growing new ietail areas (primarily the Bangor Mall area where over 3 million square feet on new retail space has been developed over the past 20 years) the challenge has been to find new uses for these buildings. Realizing the symbolic importance of a vibrant downtown, over the past three years significant staff and financial resources have been devoted to imparting new vitality to this important part of the City. The effort is proving worthwhile. Renovation and reuse of the 140,000 square foot former Freeses department store building;with its dominant presence as a Main Street anchor,was substantially completed in 1999. The building now provides 75 units of new housing in the downtown area. Additionally,the community is well on its way to meeting its fundraising goals for a 22,000 square foot state of the art children's museum,to be located on the bottom three levels of the Main Street side of the building. The museum is scheduled to open in 2000, and is expected to attract 70,000 I-18 City of Bangor,Maine ComprehensiveAnnual Financial Report For the Year Ended June 30,1999 Introductory Section visitors to the downtown annually. The City is also working closely with the University of Maine, which is interested in occupying the remaining 14,500 square feet of building space as an art museum. If, as we expect,these efforts are successful, the art museum would also open in 2000. , Cadillac Mountain Sports (named after Cadillac Mountain in nearby Acadia National Park) has established itself in the 44,000 square foot former W.T. Grants building with a small degree of loan assistance from the City through its Federal Community Development Block Grant Program. The City is also working closely with the Penobscot County Commissioners,who have a strong interest in expanding their adjacent County offices and court system into the remaining upper floor space of this building. Across the street from the Penobscot County Courthouse, renovation of the 33,165 squaze foot former Bangor Furniture complex is substantially completed. These four adjacent buildings will house a mixture of retail,restaurant,residential and office uses. The restaurant and retail areas aze now fully occupied. Construction is being completed in the remaining areas to accommodate specific tenant needs. , The City assisted in the project by providing tax increment financing and a loan for the residential component through its Federal Community Development Block Grant Program. The City has also expanded a nearby parking lot,providing additional parking for the project's tenants. This project complements the rehabilitation of two adjacent historic mixed-use properties, successfully completed and occupied in the last two years. As an example of the new activity downtown,Blue CrossBlue Shield of Maine,which established a call center and walk in office in One Merchants Plaza in the prior year, continues to expand at that location, providing over 70 new jobs in the center of downtown. Both complementing and adding to the cultural ambience of the proposed children's museum, art museum, and recently completed $8 expansion of Bangor's Public Library, several local artists have established studios in vacant,older former office space. Indeed,the upper levels of one office building have been fully occupied by artists. This cultural interest, along with the addition of new residential living opportunities, is giving a new life to the downtown and riverfront area. In all, . the City's efforts have spawned a flurry of new interest and over$12 million in private investment in the downtown. Waterfront Redevelopment The City is progressing in the redevelopment of almost a mile of prime Penobscot River frontage, extending from the City's downtown area to the Bass Park Complex, one of Bangor's more significant economic engines. Remediation of the 36-acre site,performed in cooperation with the Maine Department of Environmental Protection,is now substantially complete,readying the azea for development in 2000. I-19 City of Bangor,Maine ComprehensiveAnnual Financial Report For the Year Ended June 30,1999 Introductory Section The City's riverfront planning and development consultant, Hunter Interests of Annapolis, Maryland,has completed an economic feasibility analysis and conceptual development plan which proposes a$180 million development that would include: ■ A five story, 250 room headquarters hotel anchoring the center of the site with an adjacent 60,000 square foot high-technology conference center; ■ 100,000 square feet of office space; ■ 60,000 square feet of restaurant and retail space; ■ A 36,000 square foot Maine products pavilion; ■ Four buildings containing 310 residential apartment and condominium units; ■ A Phase II 175 room hotel adjacent to I-395; ■ A 30,000 square foot marina building serving the residential units and hotels; ■ A 36,000 square foot harbor master pavilion serving not only as a working harbor master's office, but also as a visitor center with retail, food and beverage and historical components; ■ A 36,000 square foot transportation center; and ■ A Greek style, banked amphitheater of 60,000 squaze feet, including stage area and seating for up to 1,500. The amphitheater would be integrated into upper hoteUconference center decking, plazas, and pedestrian linkages, and will serve as the location for the highly popular summer Shakespeare festival and other multi-faceted events in spring, summer, and fall. A five thousand linear foot riverfront park will be developed along the river's edge with pedestrian • walkways,bike-paths, and various other recreational amenities such as jogging and skating paths, boardwalks, picnic azeas, an ice skating rink, cazousel, playgrounds, mazes, and the like. Additionally,the City plans 750,000 square feet of grass and landscaped areas,including berming, trees, shrubs, flower beds and hedges. Public investment from a variety of funding sources is projected to be $36 million. This would include funding for the proposed conference center, parking and other infrastructure improvements. A State bond issue approved by voters in November, 1999 contains $1.2 million for bulkhead and infrastructure improvements that will be undertaken in the spring of 2000. The City has retained Hunter Interests to assist through the development phase. A Request for Qualifications will be issued to developers in January, 2000, and a Request for Proposals will be I-20 City oJBangor,Maine Comprehensive Annual Financial Repon For t{:e Year Ended June 30,1999 Introductory Section issued in March, 2000. Additionally,the City continues to move on several other fronts. Some of the more significant initiatives currently underway include the following: ■ Broadening the revenue base: One of the persistent financial weaknesses of Main municipalities is their reliance on the property tax as the primary source of revenue. This is not merely a matter of revenue diversification, but more importantly of providing the financial wherewithal to undertake longer term,economic development projects. The City has developed and is implementing a strategy to lobby the State legislature for, among other things,the authority to levy a wider array of taxes that � will allow it and other Maine cities more financial flexibility. One initiative of note is the ongoing efforts of a coalition of the State's larger cities and towns, in which Bangor plays a principal role, to structure a permanent funding source for the development and maintenance of ineeting and conference facilities appropriate to market opportunities throughout the State. This initiative will play out over the next year, and will be dependent upon the ability to structure a politically "saleable"package of both revenue and power sharing. ■ Infrastructure and service im�rovements: Bangor continues to build upon its strengths. Infrastructure investment,both to enhance the comrnunity's quality of life, and to support economic growth, remains an important priority. Accordingly, the City continues to be acutely attentive to the condition of its streets, sidewalks,public transportation,waste disposal and other systems so as to maintain Bangor's livability and its attractiveness to firms and individuals seeking to locate here. By their nature; these are ongoing projects. With further respect to the City's quality of life, Bangor offers the lowest cost of living of any metropolitan area in New England, one of the lower crime rates of any metropolitan area in the country, abundant green space and outdoor recreational opportunities, longstanding support for the arts, and an exceptional public school system that is consistently ranked among the best in the State. Bangor has also been named the best small city in the country in the two most recent MacMillan's Places Rated Almanac. Further, the City was recently ranked the best of 17 metropolitan areas with populations under 100,000 in overall livability, and has been favorably compared to 350 other metropolitan azeas across North America, particularly with respect to its low crime rate and extraordinary recreational opportunities. ■ Ne�hborhood preservation and improvement: The City has consistently pursued policies designed to preserve and improve its neighborhoods. These efforts began in the 1960's under the Urban Renewal program, when the City undertook a systematic effort to identify and improve neighborhoods under stress. These efforts have continued through such mechanisms as a residential rehabilitation program, I-21 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30, 1999 Introductory Section funded through the Community Development Block Grant Program, as well as a variety of local initiatives, as contained in the City's Comprehensive Plan which was adopted in the early 1990's and revised two years ago. A major component of this initiative is the ongoing review of City neighborhoods to determine their present conditions and evaluate what, if any, intervention strategies are necessary and appropriate to protect and preserve them. The City has targeted specific areas of the City for a detailed review as to structure, condition and public infrastructure. On the basis of these evaluations and their resulting data, the City is developing strategies to address those neighborhoods under the greatest stress. These will range from enhanced code enforcement efforts, through infrastructure improvements, to targeted residential rehabilitation; all geared toward stabilizing and improving those areas found to be deteriorating on either a physical or socioeconomic basis. ■ Transportation:Bangor's central location within the State is, and always has been one if its great strengths. Accordingly,transportation is a key ingredient in the City's economic present and future. There are currently two initiatives proceeding from the State level that will, over time, vastly improve and more closely integrate Bangor's transportation facilities. Assuming these come to fruition,Bangor will become a hub through which both passenger and freight traffic will eventually flow into and out of the central and northern portions of the State, as well as between the surrounding Canadian provinces and on into the Midwestern states. The State's long range Strategic Passenger Plan as well as its Strategic Freight Plan both identify Bangor as a key point of entry, departure and transhipment, largely due to the presence of well-developed air, ground and rail transportation systems in and around the City. As part of these companion plans, the State has recently allocated approximately one million dollars,the major portion of which will be used to study the development of intermodal facilities for moving passengers between BIA and Mount Desert Island, the location of Bar Harbor. Additionally,the Governor recently introduced a plan to improve the major east-west roadway across the State. The plan includes both road straightening and widening projects as well as the purchase of land along the route as a right of way for future expansion to a four lane road. Bangor would stand to benefit from any such improvements, as it sits astride the existing east-west route and represents the shortest distance between Canada's easternmost provinces and the cities of Quebec and Montreal. It is thus ideally situated and equipped to act as a transhipment point for such commerce. I-22 City of Bangor,Maine Comprehensive Annual Financial Report For tl:e Year Ended June 30,1999 Introductory Section � ■ Economic development strate�v: Economic development activities remain vital to the City. In addition to its many other efforts in the regard,the City continues to work toward pulling the often disparate efforts of various groups and individuals into one cohesive whole,and enhancing their effectiveness. T'his remains a longer term effort, requiring careful coordination and planning, and is proceeding apace. ■ Intra-city communications: The City has completed the core installation of a new communication system that will tie councilors and staff more closely together and streamline many aspects of managing the City's affairs,thus moving the City in a less paper-intensive direction. This represents the first step in more fully involving citizens in City affairs through the increasingly wider dissemination of information and by making government and its procedures more widely and easily accessible. CONCLUSION Overall the City of Bangor's financial position is sound. Our t� collection rate is strong and continues to improve, our control of expenses is excellent and our procedures and processes for managing City assets work well. Further,we are both liquid and prudently invested, and we have adequate insurance and reserves to meet any reasonable unforeseen events. As always, it is our sincerest hope that this document meets the informational needs of its primary intended audience;the people of Bangor and their elected City Council. Its intent, as mentioned at the outset, is to give the City's financial statements more depth, aid in their interpretation, and help the reader identify the issues inherent in the City's financial operations. In addition, it is intended to provide a means.by which interested parties can more fully assess the City's financial well being. We hope that this has indeed been accomplished. This document has also been prepared in accordance with the standards set by the Government Finance Officers Association of the United States and Canada (GFOA) with the intent of submitting it for consideration under their Cert�cate of Achievement for Excellence in Financial Reporting program. GFOA awarded its Certificate of Achievement to the City of Bangor for its first Comprehensive Annual Financial Report,which was produced for the fiscal year ended June 30, 1997. The City's FY98 CAFR was similarly recognized by the GFOA. The Certificate is a prestigious national award recognizing conformance with the highest standards of state and local government financial reporting. In order to be awarded a Certificate, a government must publish an easily readable and efficiently organized comprehensive annual financial report,the contents of which conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe this CAFR continues to conform to the Certificate of Achievement program requirements and exacting standards. I-23 City of Bangor,Maine Comprehensive Annua!Financial Report For the Year Ended June 30,1999 Introductory Section � ACKNOWLEDGMENTS The preparation of this document would not have been possible without the hazd work and almost encyclopedic expertise of Debbie Cyr, Bangor's Deputy Finance Director. She is primarily responsible for preparing the City's general purpose financial statements and the accompanying exhibits, schedules and notes. Additional thanks are extended to Rod McKay and his Community and Economic Development staff,including Stan Moses,Katherine Weber,Sally Burgess,Dan Wellington,Maggie Ellison and Jan Theriault for their research and technical support; Ben Birch, our City Assessor,for his help in compiling and managing tax base data; David Little for his assistance in constructing the financial statements;Barbara Pepin for her contributions in the human resources azea; and Annette Stover and Margaret O'Neill for their absolutely indispensable help in assembling and publishing this document. Finally,our sincerest thanks are once again extended to the Bangor City Council and City Manager Ed Barrett for their continued support of our efforts to further develop the City's financial management and reporting capabilities. We hope that we have once again met your expectations of us. Respectfully submitted, Ronald I. Heller Finance Director I-24 This page left intentionally blank . Citv of Ban�or, Maine Awards Received and Reco�,nition Bestowed 1993-1999 Government Finance Of�cers Association of the United States and Canada, 1998 and 1999 Certificate of Achievement for Excellence in Financial Reporting For the City's Comprehensive Annual Financial Report for the Fiscal Years Ended June 30, 1997 and June 30, 1998 Maine Department of Environmental Protection, 1998 Certificate of Achievement to John Murphy, Assistant City Engineer for "...his creative...approach to CSO reduction...and for protecting and improving the waters in the State of Maine." Governor of the State of New Hampshire, 1998 Commendation Awarded to the Bangor Fire Department for Outstanding Service to the State of New Hampshire Maine Town and City Managers' Association, 1997 Linc Stackpole Manager of the Year Award to Edward A. Barrett, City Manager John J. Gunther Blue Ribbon Practices in Community Development, 1997 Award in Housing and Award for Economic Opportunity Maine Department of Environmental Protection, 1997 Recognition as a National Leader in the Abatement of Combined Sewer Overflows National League of Cities Award, 1997 Shaw's Food and Drug Project Bangor Convention and Visitors Bureau, 1997 Eagle Tourism Award to Dale Theriault and the Bangor Parks and Recreation Department Fleet Bank All-Star Award, 1997 To Bangor Parks and Recreation Department For Community Service for the Bangor Playground Maine School Superintendents Association, 1996 Superintendent of the Year Award to James Doughty, Bangor Superintendent of Schools Continued on Following Page I-26 Citv of Ban�or, Maine Awards Received and Recognition Bestowed 1993-1999 Continued Consulting Engineers of Maine, 1996 Honor Award for Engineering Excellence for the Shaw's Food and Drug Project Maine Association of Planners, 1996 Project of the Year Award to Community and Economic Development Staff for the Bangor Front Street/Waterfront Development American Consulting Engineers Council of New England, 1994 Excellence Award for Professional Design Excellence for the Upgrade and Expansion of the Bangor Water Pollution Control Facility by CH2M Hill New England Water Pollution Control Association, 1993 Alfred E. Peloquin Award to John Murphy, Staff Engineer for Significant Contributions to the Wastewater Treatment Field I �� % i . � � �3 I � �c ':}. 1 I ; ;.. .. < � . � ai� :�'� k g .t'. �.j�:::.; ( I-2/ ��i--��-��+�—r_ u. R. ,•kti °`.4-'\/ ij +.. ��y ra s ;/ � � �� r ?sti:i's'si�?; . <I;�:: � �i'.i� � �"1 . C 4�" � t y � r ��' + . k, a rr . S� ..+„�, _�, �Hr +:it�n-:.`t� �r ��(?!. L,� . ..a 'i'�.,1: �. t ;e�#�3 •ib,�sbf .. *�. . �f ��:ss .. .•� . ��i �?� � �Vr 1� ♦-.� 1 s"i � 'x .i� ��xle ��s�1k �¢��r �-.. k�.n:;�"'� i 7i"5 � YiJy -. " 1�,: !ii � � i'� � yrr k ,r i �� 7f r'r � t.� , ��. � ti ;;�- r„l � �s 6�"x� r ti z �'" � � ��,�: � , � ,� � r ,,; r,-��„ > , ' @.� T �. �iE > >:: ',�.: fe 5%4f � t5 r. �� ti 4 �a :2:.:.�. - .� ' " v, •• : ,�. , �s x,,. �`. 1 �; �4��vt Certif icate of � �� :� ;,,=;i:�F�;it�; ;�1i.,.�:', �;a�� , � t��"�� Achievement 5�� G� � ��,r:.�''� "�r "��";�i!: ux-~ � for Excellence �� 3 �� , -�� .. 1 x � . �y~�;��' in Financial ;� �� , ,., . �. =s<K.wYt1��. �°,`•:+,:,��r.r, .,I��ii�Y'�Y�: �� "i�? � 4l'a+�' • . �,:, Ke ortln t�` � I � r p g :� ...: �'� Presented to 1 `�?� �,��:, ;.,,� :,::�:.. _ :: ';�;;<<�f ,:;;:, . :: ��d:,,,�a� �� ::;: ::�:: �_�:: City of Bangor, s, '`. � r . . � ` � Maine '`_��` ,� :�� "";: For its Comprehensive Annual �`�4 � ' :tK,,��,:; ;•'.�s:�r:,.;:::: '� �� Financial Report '"°'��` ,,,,..:.: �. r�'T,� for the Fiscal Year Ended ```� � - June 30, 1998 _ �``'=' ��' A Certificate of Achievement for Excellence in Financial '�� ; " Reporting is presented by the Government Finance Officers ` ,�- °:a�. �.��'�`""'�' Association of the United States and Canada to �� \� `E�:;;;�s :::r;; :::�;:::i. � �w�a,far; ;ii:'e o � government units and public employee retirement �:;,:, ;;1\ �^��'d��' �� systems whose comprehensive annual financial .`` `�' `; <��,:�:�, �� ` :;��>::::< _�-��:��: reports (CAFRs) achieve the highest :'�:::_�:; : standards in government accounting - _ � and financial reporting. 1' �?�!,�:j.,,;�,i+.�� _.. �414F;;�f}, .{+ � .t�.�/: .i3�1 9 M !��',,':1',y�.'�s�. �i'.s :jjJ%::::.4, \ F�h :�. ' 4%� s'�:: .r` 4,aP"`E�FF'�� b y��/ / � ��.-::.:. s wZ �1' �,`^c ✓ ;tii.�:::;= W U�ITf�ATfS y _ - � T �� N � N �c'� ��` G'U°p � President c , � cokroruroN o � >�S�dI. .� I� �\<: i, .%!�i►�'t �9 � /J �«. '�� `'c. _ .l ��1.0 CNq�6o Y. ` � : ( Fl�4FT�!. �_�/�� .� , �r � il�%� �13' + i + : �wv� �\1�- rrai / s. Y.; ' , � �,�+', t u.� k - Executive Director t ` ? Y� r'= ` ,'�`.vk�:: y .z.;, , ,-� ,: ;`:`+:;�', ,r;s cc`;: ., .. rlj....�;yi;' 1. "•-'�'x r ��,i ,t�y ,r��: . 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Baldacci, Mayor Michael W. Aube Patricia Blanchette Michael R. Crowley Nichi S. Farnham Gerry G.M. Palmer John M. Rohman James M. Tyler Judith Vardamis Ci Staff Edward A. Barrett, City Manager Benjamin F. Birch, City Assessor Gail E. Campbell, City Clerk Ronald I. Heller,Finance Director Norman Heitmann, City Solicitor Bangor School Committee Martha G.Newman, Chairman Phyllis M. Shubert, Vice Chairman Susan A. Carlisle Suzanne M. Cox Arthur G. Eaton, Jr. Scott E Lary Rachel G. Leen School Committee Staff James Doughty, Superintendent of Schools Robert Ervin, Assistant Superintendent of Schools Alan F. Kochis, Director of Business Services , I-32 4$9�. i,�e r �i� s`--� �x ..lA�°s1�� t�� ° .;i.s�t�il�. . .fca.+.� ri�s'+ y r i;i �-r�ai•'at� 1:' •�j•'.. �� 'r s r u' � �3R .'I,:k F._s , r+ ,+,I. ; =a�t�... r E .f.s e 4 i o ��; .;j � �s. �.rrr:;. ;�z,:fiss x�r� = r�.rt''�?'� ��l�� i� i s 9 t�y\ i� j i { �. ''f s �i r:&e �+.A i.;4a�r a�t t at ri.�•,' i w.x+"' f=� I t R' :i + y ..�p'�r!' 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'�. t�on 4b �Y ` ,>c. „ �-i 3a . • --st�Sf",�'Y� i t�" 'S-. s s � � � � .� � �. ....: . .:�r...�; �...:�..� ... . .. .. .«:•.: ' RUNYON � � � KERSTEEN OUELLETTE Certified Public Accountants &Business Consultants Independent Auditor's Report City Council • City of Bangor,Maine: We have audited the accompanying general purpose financial statements of the City of Bangor, Maine, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Bangor, Maine's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards appiicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes esamining, on a test basis,evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion,the general purpose financial statements refened to above present fairly, in all material respects,the financial position of the City of Bangor, Maine as of June 30, 1999, and the results of its operations and the cash flows of its proprietary and nonexpendable trust fund types for the year then ended in conformity with generally accepted accounting principles. . Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group statements presented on Schedules A-1 through G-2; are for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Bangor, Maine. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements, and in our opinion, is fairly stated in all materia) respects in relation to the general purpose financial statements taken as a whole. 20 Long Creek Drive South Portland,ME 04106 207-773-2986 or 1-800-486-1784 � . FAX 207-772-3361 or 1-800-486-1785 Y http://wwwrko-cpas.com The CPA. Never Underestimate The Value City Council Page 2 The information in the statistical section has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, accordingly,we express no opinion on such data. In accordance with Government Auditing Standards,we have also issued a report dated October 12, 1999 on our consideration of the City of Bangor,Maine's internal control over financial reporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants. �.�;��, a.�.��,� October 12, 1999 South Portland, Maine , .'1� ... . . - -;• :, :. „ .,.< � �, ,, ... •;: ., .. ., -., ..: _.,s'. ,„...i .:. . �� .. �:: � . z, j f: .. ,�F a f� . . , F , ' s:: � � �, ' �. .• .i� .� • • ... .... �� .: - ....., '� ^: . . .�I i: � y,\s g '>: . � .. ' �.,.� . �, ,> ; , _:; ..� � .� L . ' ` �? � x ` COMBINED FINANCIAL;STATEMENTS � �: ' ("Liftable",General�Purpose ��nancial Statements) � � ;, , , These basic financial stiaternents;provide a surnmary o�erview of the financial,position of all funds and account groups and of the operating results of all funds They.also,serve as an i�tr,oduction to the more ; •. detailed`statements arid schedules that follow � - .; , �� ; , . s : ,.� ! . . . .. . :: ; . ;_ ; _ - ; V � �;� . . . - � .. -.%F � � ` R '�;' s �' , ., I F Y 1 � �: � •: : .:�w ..i .. f ... . ..: . . , ,: . . , 3. .. .. � ...., . . ,.- <; �. :f h .. ! ' . � . �':j .... ' . . . _ �:.; �y � . . , ' . � .• ..,?.,, t , ' . ' . . . . . a ' . ' , }. t City of Bangor, Maine Combined Balance Sheet All Fund Types and Account Groups June 30, 1999 Governmental Fund Types Special Capital General Revenue Projects Assets and other debits Assets: Cash on hand $2,962 $250 - Equiry in pooled cash and investments 905,621 71,648 328,637 Investments 9,163,342 - - Receivables: Taxes 2,312,134 - - Accounts 548,472 1,629 15,450 Loans - 4,162,752 - Defened special assessments - - 30,130 Due from water district - - - Due from other funds 3,292,560 - - Due from other governments 1,208,339 179,547 15,959 Inventories, at cost 323,700 - - Prepaid items 27,974 42,881 - Property, plant and equipment - . - - Investment held by bond trustee - - - Deposits - - - Other assets - - 1;191,051 Other debits: Amounts available for self insurance - - - Amount to be provided for retirement of general long-term debt payable - - - Total assets and other debits $17 785,104 $4,458,707 $1,581,227 The notes to the financial statements are an integral part of this statement. Continued on facing page II - 1 Exhi it 1 Proprietary Fiduciary Fund Type Fund Type Account Groups General General Totals Trust and Fixed Long-Term (Memorandum Enterprise Agency Assets Debt Only) $8,350 - - - $11,562 2,069,950 138,877 - - 3,514,733 19,199,237 1,570,143 - - 29,932,722 - - - - 2,312,134 3,273,442 839 - - 3,839,832 - 43,635 - - 4,206,387 112,864 - - - 142,994 131,219 - - - 131,219 - - - - 3,292,560 263,704 - - - 1,667,549 114,070 - - - 437,770 64,025 - - - 134,880 181,873,269 - 63,957,655 - 245,830,924 30,317 - - - 30,317 15,000 - - - 15,000 7,145,470 - - - 8,336,521 - - - 2,149,504 2,149,504 - - - 54,121,464 54,121,464 $214 300 917 $1 753 494 $63 957 655 $56 270 968 $360 108 072 II -2 Ciry of Bangor, Maine Combined Balance Sheet All Fund Types and Account Groups June 30, 1999 Governmental Fund Types Special Capital General Revenue Projects I iabilitie�., equity and other credits Liabilities: Accountspayable $1,254,759 $72,636 $342,707 Workers' compensation 607,890 - - Accrued compensated absences - - - Accrued payroll and withholdings 2,526,365 - - Accrued interest - - - Taxes collected in advance 29,707 - - Amounts held for others - - 14,979 Deferred revenue 2,200,129 4,162,752 - Due to rehabilitation recipients - 64,761 - Due to other funds - 371,000 - Developer payable deposits - - - General obligation debt payable - - - Limited obligation revenue debt payable - - - Deferred amount on refunding - - - Arbitrage payable - - - Obligations under capital lease - - - Unfunded actuarial liability - - - Other liabilities - - - Long-term obligation for self insurance - - - Totalliabilities 6,618,850 4,671,149 357,686 Liabilities, fund equity and other credits: Investment in general fixed assets - - - Contributed capital - - - Retained earnings: Reserved - - - Reserved for debt service - - - Unreserved - - - • Fund Balances: Reserved for: Encumbrances 475,962 47,159 254,778 Prepaid items 27,974 - - Due from other funds 2,885,000 - - Loans - - - Endowments - - - Unreserved: Designated 3,535,076 - 758,358 Undesignated 4,242,242 (259,601) 210,405 Total equity and other credits 11,166,254 (212,442) 1,223,541 Total liabilities, equity and other credits $17 785,104 $4,458,707 $1,581,227 The notes to the �nancial statements aze an integral part of this statement. Continued on facing page II - 3 Exhibit 1 (con'tl Proprietary Fiduciary Fund Type Fund Type Account Groups General General Totals Trust and Fixed Long-Term (Memorandum Enterprise Agency Assets Debt Only) $1,506,374 $4,073 - - $3,180,549 484,580 - - - 1,092,470 261,468 - - 1,360,408 1,621,876 348,066 - - - 2,874,431 576,301 - - - 576,301 - - - - 29,707 - 527,803 - - 542,782 436,911 - - - 6,799,792 - - - - 64,761 2,921,560 - - - 3,292,560 58,883 - - - 58,883 41,636,421 - - 21,254,395 62,890,816 4,940,000 - - - 4,940,000 (585,866) - - - (585,866) 120,568 - - - 120,568 - - - 352,735 352,735 - - - 31,153,926 31,153,926 365,840 - - - 365,840 - - - 2,149,504 2,149,504 53,071,106 531,876 - 56,270,968 121,521,635 - - 63,957,655 - 63,957,655 112,780,162 - - - 112,780,162 2,068,689 - - - 2,068,689 539,308 - - - 539,308 45,841,652 - - - 45,841,652 - - - - 777,899 - - - - 27,974 - - - - 2,885,000 - 130,663 - - 130,663 - 535,321 - ' - 535,321 - - - - 4,293,434 - 555,634 - - 4,748,680 161,229,811 1,221,618 63,957,655 - 238,586,437 � $214 300 917 $1 753 494 $63 957 655 $56 270 968 $360 108 072 II -4 Exhibit 2 City of Bangor,Maine Combined Statement of Revenues, Expenditures,and Changes in Fund Balances All Governmental Fund Types and Expendable Trust Funds For the Fiscal Year Ended June 30, 1999 Fiduciary Governmental Fund Types Fund Type Totals Special Capital Expendable (Memorandum General Revenue Projects Trust Only) Revenue��. Taxes $35,238,716 - - - $35,238,716 Intergovemmental 21,228,186 4,370,160 877,754 - 26,476,100 Licenses and permits 499,483 - - - 499,483 Charges for services 8,206,229 319,038 - - 8,525,267 Fines, forfeits,and penalties 24,813 - - - 24,813 Revenue from use of money and property 1,338,301 - 227,506 17,085 1,582,892 Program income - 385,471 - - 385,471 Other - 5,009 33,461 - 38,470 Conuibutions - - - 62,405 62,405 Totalrevenues 66,535,728 5,079,678 1,138,721 79,490 72,833,617 Expenditures; Current: General government 3,429,619 - - - 3,429,619 Public safety 10,330,128 - - - 10,330,128 Health,welfare, and recreation 2,647,397 - - - 2,647,397 Public buildings and services 7,125,389 - - - 7,125,389 Other agencies 2,391,962 - - - 2,391,962 Education 34,224,834 - - - 34,224,834 Other appropriations 131,815 - - - 131,815 Community development block grants - 1,459,861 - - 1,459,861 Grant fund - 3,857,251 - - 3,857,251 Payments to beneficiaries - - - 596 596 Capital outlay: Capital additions 1,521,493 - 3,562,673 - 5,084,166 Landfill closure and postclosure care costs - - 205,446 - 205,446 Debt service(excluding education) 1,340,136 - - - 1,340,136 Totalexpenditures 63,142,773 5,317,112 3,768,119 596 72,228,600 Excess(deficiency)of revenues overexpenditures 3,392,955 (237,434) (2,629,398) 78,894 605,017 OWer financin�sources(us� Sale of assets 158,993 - - - 158,993 Generalobligationdebt - - 1,157,600 - 1,157,600 Transfers to other funds (799,516) (19,002) (29,962) (26,862) (875,342) Transfers from other funds 89,840 3,758 809,358 - 902,956 Operating subsidy (905,078) - - - (905,078) Capitalized leases 196,629 - - - 196,629 Total other financing sources(uses) (1,259,132) (15,244) 1,936,996 (26,862) 635,758 Excess of revenues and other financing sources over expenditures and other uses 2,133,823 (252,678) (692,402) 52,032 1,240,775 Fund balances/(deficit),July 1 9,032,431 40,236 1,915,943 124,864 11,113,474 Fund balances,June 30 $11,166,254 ($212,442) $1,223,541 $176,896 $12,354,249 The notes to the financial statements are an integral part of this statement II-5 �xhik�it 3 City of Bangor, Maine Statement of Revenues, Expenditures, and Changes in UnreservedlUndesignated Fund Balance-Budget and Actual- Budgetary Basis General Fund � For the Fiscal Year Ended June 30, 1999 Final Budget Actual Variance Ltev_�nues: Taxes $34,891,669 $35,238,716 $347,04'7 Intergovernmental 16,542,191 17,733,946 1,191,755 Licenses and permits 357,220 499,483 142,263 Charges for services 7,327,255 7,879,418 552,163 Fines, forfeits and penalties 25,350 24,813 (537) Revenue from use of money and property 697,266 600,085 (97,181) Totalrevenues 59,840,951 61,976,461 2,135,510 Expenditures: Current: Generalgovernment 3,533,882 3,371,246 162,636 Public safety 10,241,366 10,326,120 (84,754) Health, welfare, and recreation 2,644,866 2,651,052 (6,186) Public buildings and services 7,227>582 7,321,657 (94,075) Other agencies 2,414,685 2,391,962 22,723 Education 32,001,794 31,926,707 75,087 Other appropriations 226,602 131,815 94,787 Debtservice 1,345,983 1,340,136 5,847 Total expenditures 59,636,760 59,460,695 176,065 Excess of revenues over expenditures 204,191 2,515,766 2,311,575 Other financin�sources_(u�es�:. Appropriation from designated fund balances 569,'766 362,286 (207,480) Sale of assets 1,000 27,342 26,342 Transfers to other funds (735,836) (735,836) - Transfers from other funds 50,561 50,561 - Operating subsidy (905,078) (905,078) - Total other financing(uses) (1,019,587) (1,200,725) (181,138) Excess (deficiency)of revenues and other fmancing sources over expenditures and other uses ($815,396) 1,315,041 $2,130,437 Unreserved/Undesignated balance, July 1 3,945,102 Appropriation to designated fund balances (7g5>000) Balances carried from prior year 815,396 � Balances canied to succeeding year (1,048,297) Unreserved/Undesignated balance, June 30 $4,242,242 The notes to the financial statements aze an integral part of this statement. II-6 Exhibit 4 City of Bangor, Maine Combined Statement of Revenues, Expenses, and Changes in Retained Earnings/Fund Balances All Proprietary Fund Types and Similar Trust Funds For the Fiscal Year Ended June 30, 1999 Proprietary Fiduciary Fund Ty� Fund Ty� Total Nonexpendable (Memorandum Enter,prise Trust Only) O�eratin�revenues: Charges for services $20,736,623 - $20,736,623 Interest - 110,235 110,235 Other - 3,857 3,857 Total operating revenues 20,736,623 114,092 20,850,715 O�eratin�e�nses_ Operating expenses other than depreciation and amortization 14,834,239 7,177 14,841,416 Depreciation and amortization: On assets acquired with own funds 3,239,404 - 3,239,404 On assets acquired with contributions 4,450,024 - 4,450,024 Total operating expenses 22,523,667 7,177 22,530,844 Operating income (loss) (1,787,044) 106,915 (1,680,129) Non-o�eratin�revenues�ex�ense�:_ Interest income 1,029,843 - 1,029,843 Interest expense (2,170,136) - (2,170,136) Miscellaneous income 256,077 - 256,077 Total non-operating revenues (expenses) (884,216) - (884,216) Net income (loss)before operating transfers (2,671,260) 106,915 (2,564,345) Transfers to other funds - (66,650) (66,650) Transfers from other funds 39,002 34 39,036 Operating subsidy 905,078 - 905,078 Net income (1,727,180) 40,299 (1,686,881) Add depreciation and amortization on fixed assets acquired by grants and contributions 4,450,024 - 4,450,024 Increase in retained earnings/fund balances 2,722,844 40,299 2,763,143 Retained earnings/fund balances, July 1 45,726,805 1,004,423 46,731,228 Retained earnings/fund balances, June 30 $48,449,649 $1,044,722 $49,494,371 The notes to the financial statements are an integral part of this statement. II - 7 ' Exhi it 5 City of Bangor, Maine Combined Statement of Cash Flows All Proprietary Fund Types and Similar Trust Funds For the Fiscal Year Ended June 30, 1999 Proprietary Fiduciary Fund Type Fund Type Total Nonexpendable (Memorandum Enterprise Trust Only) Cash tlows from operating activities: Cash received from customers $20,835,244 - $20,835,244 Cash payments to suppliers for goods and services (7,204,933) (1,537) (7,206,470) Cash payments to employees for services (8,527,110) - (8,527,110) Other operating cash receipts - 14,005 14,005 Other operating cash payments - (72,290) (72,290) Net cash provided by (used in) operating operating activities 5,103,201 (59,822) 5,043,379 Cash flows from non-ca�ital financing activities: Interfund loans (repayments) 715,223 . - 715,223 Operating subsidies received 905,078 - 905,078 Net cash provided by (use in) non-capital fmancing activiries 1,620,301 - 1,620,301 Cash flows from capital and related financing activities: Proceeds from general obligation debt 5,028,600 - 5,028,600 Acquisition and construction of capital assets (8,889,385) - (8,889,385) Principal paid on general and limited obligation revenue debt (2,845,585) - (2,845,585) Interest paid on general and limited obligation.revenue debt (2,099,552) - (2,099,552) . Proceeds from sale of equipment 341,915 - 341,915 Insurance/claims proceeds 5,317 - 5,317 Grant monies received for capital assets 1,860,847 - 1,860,847 Contributions received for capital assets 90,630 - 90,630 Investment of bond proceeds (1,758,877) - (1,758,877) Net cash provided by (used in)capital and related financing activities (8,266,090) - (8,266,090) Cash flows from investin�activ_itie�_ Net sales (purchases) of investments 1,509,360 (49,440) 1,459,920 Interest on investments 1,036,170 109,262 1,145,432 Loans issued (545,500) - (545,500) Loan repayments 64,178 - 64,178 Net cash provided by (used in) investing activities 2,064,208 59,822 2,124,030 Net increase (decrease) in cash 521,620 - 521,620 Cash, July 1 1,556,680 - 1,556,680 Cash, June 30 $2,078,300 - $2,078,300 The notes to the fmancial statements are an integral part of this statement. II - 8 Exhib�it��con't� City of Bangor, Maine Combined Statement of Cash Flows � All Proprietary Fund Types and Similar Trust Funds For the Fiscal Year Ended June 30, 1999 Proprietary Fiduciary Fund Type Fund Ty_pe Total Nonexpendable (Memorandum Enterprise Trust Only) Reconciliation of��eratin�inc9me�los� t_o_net cash�ro_vided by_(used in) o�eratin�activ_ities: Operating income (loss) ($1,787,044) $106,915 ($1,680,129) Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Depreciation and amortization 7,689,428 - 7,689,428 Provision for uncollectible accounts 5,901 - 5,901 Presentation differences - Interest - (105,321) (105,321) Transfers, net - (66,616) (66,616) Student loan funds - 5,200 5,200 Changes in assets and liabilities: (Increase) decrease in accounts receivable (133,391) - (133,391) (Increase) decrease in due from water district 18,255 - 18,255 (Increase)decrease in inventories (886) - (886) (Increase) decrease in prepaid items (24,687) - (24,687) Increase (decrease) in accounts payable (858,059) - (858,059) Increase (decrease) in deferred revenue 219,697 - 219,697 Increase (decrease) in other liabilities (26,013) - (26,013) Total adjustments 6,890,245 (166,737) 6,723,508 Net cash provided by (used in) operating activities $5 103,201 ($59,8� $5,043,379 The notes to the financial statements are an integral part of this statement. II -9 INDEX OF NOTES TO FINANCIAL STATEMEI�ITS Page I Suu�m�ry of SiQnifi�� Accounting PoliGi�e. Note 1 Reporting Entiry II - 10 Note 2 Measurement Focus, Basis of Accounting and Basis of Presentation II - 10 Note 3 Assets, Liabilities and Equity II - 12 II. Ste�var�.ship, Com�tlia�ce and Ac�ountabili Note 1 Budgetary Information II - 14 Note 2 Budget/GAAP Reconciliation � II - 15 Note 3 Excess of Expenditures Over Appropriations II - 17 Note 4 Deficit Fund Equity II - 17 � - II �v'�d Notes on all Fun��nd�lccourit Grouns Note 1 Deposits and Investments II - 18 Note 2 Property Taxes II - 19 Note 3 Interfund Transactions II - 19 Note 4 Due From Other Governments II - 20 Note 5 Fixed Assets - � II - 20 Note 6 Leases ', II - 21 Note 7 O:ther Assets - u - 22 Note 8 Deferred Revenue II - 22 Note 9 Long-Term Debt II - 23 Note 10 Contributed Capital � II - 28 Note 11 Nonexpendable and Expendable Trust Fund Balances II - 28 - Note 12 Designated Fund Balance II - 30 IV Other In�'c�rmation Note 1 Risk Management II - 30 Note 2 Tax Increment Financing Districts II - 31 Note 3 Segment Information - Enterprise Funds II - 32 Note 4 Contingent Liabilities II - 34 Note 5 Retirement II - 34 Note 6 Landfill Closure and Postclosure Care Costs II - 36 Note 7 Subsequent Events II - 37 Note 8 Restatement of Retained Earnings II - 37 - City of Bangor, Maine Notes to Financial Statements June 30, 1999 I. Summary of Significant Accounting Policies The financial statements of the City of Bangor, Maine have been prepared in conformity with generally ' accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and reporting principles. The more sigmficant of the government's accounting policies are described below. 1. Reporting Entity The City of Bangor, Maine is govemed by a nine member elected Council and an appointed Manager. In evaluating how to define the reporting entity for financial reporting purposes, management has to consider all potential component units. The decision as to which potential component units were to be included was made by applying the criteria set forth in GAAP. The critena defines the reporting entity as the primary government and those component units for which the primary govemment is financially accountable. Financial accountability is defined as appointment of a voting majority of the component unit's board and either (a) the ability of the primary government to impose its will, or (b) the possibility that the component unit will provide a financial benefit to, or impose a financial burden on, the primary government. Based upon all pertinent facts derived from the analysis of the above criteria, it was determined that no additional entities should be included as part of these financial statements. 2. Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the City are organized and operated on the basis of funds and account groups. A fund is a separate accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minunum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. Funds are classified into three categories: govemmental, proprietary and fiduciary. Each category, in tum, is divided into separate "fund types". Governmental Funds Types Governmental Funds are used to account for most governmental functions of the City. Govemmental fund types use the flow of cunent fmancial fesources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting revenues are recognized when susceptible to accrual (i.e. when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means the amounts are collectible within the cunent period or soon enough thereafter to pay liabilities of the current period. Expenditures are recorded when the related fund liabiliry is incuned, except for principal and interest on general long-term debt, which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable ava�lable financial resources. II - 10 City of Bangor, Maine Notes to Financial Statements June 30, 1999 2. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) Governmental funds include the following types: , General Fund - The General Fund is the general operating fund of the City. It is used to account for all fmancial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used for revenue sources (not including expendable trusts or major capital projects) that are legally restricted to expenditure for specific purposes. Capital Projects Fund - The Capital Projects Fund is used to account for the acquisition of fixed assets or construction of major capital projects not fmanced by proprietary or nonexpendable trust funds. Proprietary �und Types Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incuned. The City has adopted GASB Statement No. 20 "Accounting and Financial Reporting for Proprietary Funds and Other Govemmental Entities That Use Proprietary Fund Accounting", whereby the City has elected to apply all applicable GASB pronouncements as well as Financial Accounting Standards Boazd (FASB) pronouncements issued before November 30, 1989, unless the FASB pronouncements conflict with or contradict GASB pronouncements. Proprietary funds include the following type: Enterprise Funds - Enterprise Funds are used to account for those operations that are fmanced and operated in a manner similar to a private business or where the City Council has decided that the determination of revenues earned, costs incuned and/or net income is necessary for management accountability. �iduciary Fund Types Fiduciary funds account for assets held by the City in a trustee capacity or as agent on behalf of others. Trust funds account for assets held under the terms of a formal trust agreement. Fiduciary funds include the following types: Nonexpendable Trust - Nonexpendable trust funds are accounted for in essentially the same manner as Funds proprietary funds, using the same measurement focus and basis of accounting. Nonexpendable trust funds account for assets, the principal of which may not , be spent. Expendable Trust Funds - Expendable trust funds are accounted for in essentially the same manner as governmental fund types, using the same measurement focus and basis of accounting. Expendable trust funds account for assets where both the principal and interest may be spent. II - 11 City of Bangor, Maine Notes to Financial Statements June 30, 1999 2. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) Agency Fund - The agency fund is custodial in nature and does not present results of operations or have a measurement focus. The agency fund is accounted for using the modified accnial basis of accounting. This fund is used to account for assets that the City holds for others in an agency capacity. Account Groups Account groups are used to establish accounting control and accountability for certain long-term assets and liabilities of governmental fund types and nonexpendable trust funds. The account groups do not present results of operations or have a measurement focus. Account groups include the following types: General Fized Assets - The general fixed assets account group is used to account for fixed assets not Account Group accounted for in proprietary funds. General Long-Term - The general long-term debt account group is used to account for general Debt Account Group long-term debt and certain other liabilities that aze not specific liabilities of proprietary funds. 3. Assets, Liabilities and Equity Assets Cash and Investments - The City's cash and equity in pooled cash and investments include cash on hand, demand deposits, ovemight insured instruments and other liquid investments. State statute and policy define the types of investments that may be made. Among these are U.S. Treasury and Agency notes and bonds. Expressly prohibited under City policy is the investment in so-called "derivative" instruments. Interfund Receivables - Transactions between funds that represent lending/borrowing arrangements and Payables outstanding at the end of the fiscal yeaz are reported as "due to/from other funds." Where there is no expectation that such balances will be repaid in the forseeable future, these are offset by a reserved fund balance account in the City's General Fund to indicate they are not available for appropriation and are not expendable available fmancial resources. Inventories and Prepaid - �e City accounts for inventory under the consumption method. Inventories in Items the general fund and proprietary funds consist of expendable supplies held for consumption and are camed at cost. Inventory items are recognized as expenditures, employing the average cost method, when consumed. The consumption method does not requue a reserve for inventory and the City has chosen not to have such a reserve. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items with an offsetting reserved fund balance. II - 12 City of Bangor, Maine Notes to Financial Statements June 30, 1999 3. Assets, Liabilities and Equity (Continued) Fixed Assets - Fixed assets used in governmental fu.nd types of the City are recorded in the general fixed asset account group at cost or estimated historical cost if purchased or constructed. Assets m the general fixed asset account group are not depreciated. Interest incuned during construction is not capitalized on general fixed assets. Public domain general fixed assets (e.g., roads, bridges, sidewalks and other assets that are unmovable and of value only to the City) are not capitalized. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset's life are not included in the general fixed assets account group or capitalized in the proprietary funds. Property, plant and equipment in the proprietary funds of the City are recorded at cost. Properry, plant and equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the date of donation. Major oudays for capital assets and improvements are capitalized in proprietary funds as projects are constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Property, plant and equipment are depreciated in the proprietary funds of the City using the straight line method over the following estimated useful lives: Buildings 25 - 40 years Equipment 5 - 20 years Pipelines and mains 100 years Aircraft operational assets Runways 40 years Buildings 20 years Machinery and equipment 5 - 10 years Investment Held by - This investment consists of City bond proceeds and matching federal and state Bond Trustee funds not yet requested under the State Revolving Loan Fund as administered jointly by the State Department of Environmental Protection and Maine Municipal Bond Bank. Liabilities Compensated Absences - It is the City's policy to permit employees to accumulate earned but unused vacation, compensation and sick pay benefits. With minor exceptions employees are entitled to full payment of unused vacation and compensation pay upon termination. Sick pay is available only if retirement occurs simultaneously with termination. Vacation, compensation and sick (if applicable) pay is accrued when incurred in proprietary funds and reported as a fund liability. Resources for vacation, compensation and sick (if applicable) pay are provided for in the subsequent year in governmental fund rypes. Amounts not expected to be liquidated with expendable available financial resources are reported in the general long-term debt account group. No expendihue is reported for these amounts. II - 13 City of Bangor, Maine Notes to Financial Statements June 30, 1999 3. Assets, Liabilities and Equity (Continued) Long-Term Obligations - The City reports the long-term indebtedness of governmental funds at face value in the generallong-term debt account group. Certain other governmental fund obligations not expected to be financed with cunent available fmancial resources are also reported in the general long-term debt account group. Long-term debt and other obligations fmanced by proprietary funds are reported as liabilities in the appropriate funds. For governmental fund types, bond premiums and discounts as well as issuance costs are recognized durmg the current period. Issuance costs, even if withheld from the actual net proceeds received, are reported as expenditures. For proprietary fund types, bond premiums and discounts as well as issuance costs may be defened and amortized over the life of the bonds. Issuance costs are reported as deferred charges. Fund Equity Contributed Capital - The proprietary funds' contributed capital represents equity acquired through capital grants and contributions from developers, customers, other parties or other funds. Reserves - Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific purpose. Designations - Designations of fund balance represent tentative City plans that are subject to change. Memorandum Only - Total Columns Total columns on the general purpose fmancial statements are captioned as "memorandum only" because they do not represent consolidated financial information and are presented only to facilitate fmancial analysis. The columns do not present information that reflects financial position, results of operations or cash flows in accordance with GAAP. Interfund eliminations have not been made in the aggregation of this data. Comparative Data/Reclassification Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding of the changes in the City's fmancial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. II. Stewardship, Compliance and Accountability 1. Budgetary Information Budgets are adopted on a basis consistent with generally accepted accounting principles with certain exceptions. Budgets for the General Fund and Enterprise funds are formally adopted each year through the passage of appropriation resolves. Other Special Revenue and Capital Pro�ects Funds have adopted project-length budgets. Unencumbered appropriations lapse at fiscal year end, except as authonzed by City Council. II - 14 City of Bangor, Maine Notes to Financial Statements June 30, 1999 1. Budgetary Information (Continued) Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation, is utilized in governmental funds. Encumbrances outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because goods or services have not been received in the cunent year. However, for budgetary purposes, encumbrances are treated as expenditures. On or before the second Monday in April, the Ciry Manager submits to the City Council a proposed operating budget for the ensuing fiscal year. The Council holds public meetings and a final budget must be prepared and adopted no later than June 30. Should the Council fail to adopt an operating budget on or before June 30, by Charter, the budget proposed by the City Manager becomes effective. The appropriated budget is prepared by fund, function and department. The City Manager may make transfers of appropriations within a department. Transfers between departments or additional appropriations require the approval of the City Council. The City Council made several supplemental budgetary appropriations throughout the year, including appropriating approximately $375,300 in transfers from various fund balance accounts in the general fund for operating transfers to other funds and capital asset acquisition. Other supplemental budgetary appropriations were not considered material. 2. Budget/GAAP Reconciliation General Fund revenues and expenditures reported in the Statement of Revenues, Expenditures, and Changes in Unreserved/Undesignated Fund Balance - Budget and Actual - Budgetary Basis (Exhibit 3) are presented on the basis budgeted by the City. The City follows certain accounting principles for budgetary reporting purposes that differ from generally accepted accounting principles. Such differences and their effects on the General Fund's reported operations are summarized in the following reconciliation: Other Financing Revenues Expenditures Sources (Uses) Statement of Revenues, Expenditures, and Changes in Unreserved/Undesignated Fund Balance - Budget and Actual - Budgetary , Basis (Exhibit 3) $61,976,461 $59,460,695 ($1,200,725) State of Maine "on-behalf" payments 3,491,790 3,491,790 - Activity in designated fund balance 1,065,027 163,781 (256,447) Operating transfers 2,450 3,861 1,411 Capitalized leases - 196,629 196,629 1999 encumbrances - (475,962) - 1998 encumbrances lapsed - 2,539 - 1998 encumbrances paid - 299,440 - Combined Statement of Revenues, Expenditures, and Changes in Fund Balance-All Governmental Fund Types-General Fund (Exhibit 2) $66,535,728 $63,142,773 $( 1,259,1� II - 15 City of Bangor, Maine Notes to Financial Statements June 30, 1999 2. Budget/GAAP Reconciliation(Continued) The following two schedules summarize the enterprise funds' revenue and expenditure budgets. The differences between budgetary and GAAP reporting purposes are as follows: Favorable Actual (Unfavorable) Budget (Budget Basis) Variance Revenues: Sewer $6,034,297 $6,531,349 $497,052 Airport 9,521,300 10,437,697 916,397 Park Woods 271,358 280,638 9,280 City Nursing Facility 2,946,699 2,408,618 (538,081) paz�g 978,237 1,062,774 84,537 Bass Park 1,528,308 1,497,988 (30,320) Municipal Golf Course 630,547 746,633 116,086 Economic Development 214,635 228,750 14,115 Total revenues -budget basis $22,125,381 23,194,447 $1,069,066 The financial statement classifications of nonoperating revenues' required by GAAP are treated as operating revenue for budgetary purposes. (2,018,495) Accounting for investments at market value is not a budgeted item. (439,329) Total operating revenues -Exliibit 4 $20,736,623 Expenses: � Sewer $7,552,125 $7,389,028 $163,097 Airport 11,164,380 10,373,028 791,352 Park Woods 279,580 261,503 18,077 City Nursing Facility 3,019,819 2,930,540 89,279 p�k�g 1,267,084 1,296,958 (29,874) Bass Park 1,638,000 1,678,087 (40,087) Municipal Golf Course 700,679 434,266 266,413 Economic Development 214,635 213,947 688 Total expenses -budget basis $25,836,302 24,577,357 $1,258,945 Capital outlay that has been included in an enterprise fund's operating budget is reported as an expense for budgetary purposes. (1,372,740) The principal amortization of general and limited obligation bonds, notes payable and capital leases aze recognized as expenses for budgetary puiposes. (2,834,822) Current year encumbrances aze recognized as expenses for budgetary purposes. (133,531) Prior year encumbrances are recognized as expenses in the year expended as required by GAAP. 7,515 The financial statement classifications of nonoperating expenses required by GAAP are treated as operating expenses for budgetary purposes. 2,279,888 Total operating expenses -Exhibit 4 $22,523,667 II - 16 City of Bangor, Maine Notes to Financial Statements June 30, 1999 3. Excess of Expenditures Over Appropriations The following funds had departmental over-expenditures for the year ended June 30, 1999:, General Fund - The following departments were over-expended by the indicated dollar amounts; Council ($795), Finance ($9,198), Insurance ($4,669), Fire ($146,240), Parks and Recreation ($58,585) and Public Services ($94,075). These over-expenditures were funded by receipt of revenues in excess of appropriation and under-expenditures within other General Fund departments. Bass Park - The complex was overspent on a departmental basis by $18,087. This deficit was not funded and resulted in an increase to the deficit fund balance. Parking - The fund was overspent on a departmental basis by $29,874. The deficit was funded by receipt of revenues in excess of appropriation. 4. Deficit Fund Equity The following funds had a deficit fund balance as of June 30, 1999: Community Development Block - The deficit of$283,056 will be funded in the subsequent year with Grant - Special Revenue Fund increased collection of program income. Park Woods - Enterprise Fund - The deficit of$58,814 continues to decrease due to a more effective management of the housing development. City Nursing Facility - Enterprise - The deficit of$1,094,666 is, typical of this facility, largely due to Fund its management structure and the resulting inability to anticipate and successfully adjust to an ever-changing industry. The City Council has approved a plan which, among other things: adopts a more suitable, private, not-for-profit structure. It is anticipated that a General Fund operating subsidy will continue at least until this restructuring is completed. Bass Park- Enterprise Fund - This facility was studied by a committee of staff and community members to determine how to improve operating results. The recommendations were to market more aggressively and improve the product quality. The City Council has demonstrated its support by pledging more resources to the facility. In the interim, the General Fund will continue to provide an annual operating subsidy to stabilize the deficit of$1,273,062. II - 17 City of Bangor, Maine Notes to Financial Statements June 30, 1999 III. Detailed Notes on all Funds and Account Groups 1. Deposits and Investments The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the combined balance sheet as "equity m pooled cash and mvestments" and is classified as short term. Cash is invested in various short-to-intermediate term interest bearing securities, which can be liquidated as needed. Deposits: The carrying amount of the City's deposits with financial institutions was $3,650,212 and the bank balance was $2,066,979. The bank balance is categorized as follows: Amount insured by the FDIC and Travelers or collateralized with securities held by the City in its name $2,066,979 Investments: Statutes authorize the City to invest in obligations of the U.S. Treasury, agencies and instrumentalities, repurchase agreements, corporate securities, financial institution stocks, and other stock investments. The City's investments are categorized below to give an indication of the level�of risk assumed by the entity at year-end. Category 1 - includes investments that are insured or registered, or securities held by the City or its agent in the City's name. Category 2 - includes uninsured and unregistered investments for which the securities are held by the banks' trust department in the City's name. Category 3 - includes uninsured and unregistered investments for which the securities are held by the banks' trust department or its agent but not in the City's name. Category Carrying Fair 1 2 3 Amount Value U.S. Government and agencies - $25,929,153 - $25,929,153 $25,929,153 State of Maine - 596,077 - 596,077 596,077 Repurchase Agreements - 3,740,824 - 3,740,824 3,740,824 Commercial Paper - 2,940,375 - 2,940,375 2,940,375 Certificate of Deposit 309,706 - - 309,706 309,706 Mutual Funds - - - 523,267 523,267 $309,706 $33,206,429 - $34,039,402 $34,039,402 Mutual fund investments are not required to be classified in any of the aforementioned categories because they are not evidenced by securities that exist in physical or book entry form. Due to higher cash flows at certain times during the year, the City's investment in U.S. Government and agency obligations, repurchase agreements and mutual funds fluctuates significantly. II - 18 City of Bangor, Maine Notes to Financial Statements June 30, 1999 1. Deposits and Investments (Continued) A reconciliation of cash and investments as shown on the combined balance sheet for the City follows: Equity in pooled cash and investments $3,514,733 Investments 29,932,722 Investment of bond proceeds (Other Assets) 4,237,908 37,685,363 Carrying amount of deposits $3,650,212 Less: Carrying amount of investments 34,039,402 Pending collection items 4,251 $37,689,614 $37,689,614 2. Property Tax The City's properry tax was levied July 1, 1998 on the assessed value listed as of the prior April 1, for all real and personal property located in the Ciry. The assessed value for the list of April l, 1998, upon which the 1998 levy was based, was $1,368,921,200. The estimated market value was $1,368,921,200 making the assessed value 100 percent of the estimated market value. Taxes are billed on a annual basis. Taxes were due September 15, 1998 and March 15, 1999 with interest due from that date if unpaid. Cunent tax collections for the yeaz ended June 30, 1999, were 95.7 percent of the tax levy (Table 5). Property taxes levied for the year ended June 30, 1999, are recorded as receivables. The receivables collected during the year and the first 60 days of the subsequent year are recognized as revenues for the yeaz ended June 30, 1999. Receivables estimated to be collected subsequent to the 60 day period are considered to be deferred revenues. Prior year tax levies were recorded using this same principle. 3. Interfund Transactions Individual fund interfund receivable and payable balances at June 30, 1999 were as follows: Receivable Payable General Fund $3,292,560 - Community Development Block Grant Fund - 229,000 Grant Fund - 142,000 Park Woods Fund - 36,988 City Nursing Facility Fund - 1,430,217 Bass Park Fund - 1,454,355 $3,292,560 $3,292,560 Individual fund transfers to and from other funds for the fiscal year ended June 30, 1999 were as follows: Transfers to Transfers from General Fund $799,516 $89,840 Special Revenue Funds 19,002 3,758 Capital Project Funds 29,962 809,358 Expendable Trust Funds 26,862 - Enterprise Funds - 39,002 Nonexpendable Trust Funds 66,650 34 $941,992 $941,992 II - 19 City of Bangor, Maine Notes to Financial Statements June 30, 1999 4. Due From Other Governments Due from other governments is comprised of the following amounts at June 30, 1999: Federal State of Government Maine Other Total General Fund $89,698 $886,095 $232,546 $1,208,339 Special Revenue Funds $175,553 $3,994 - $179,547 Capital Projects Fund - $15,959 - $15,959 Enterprise Funds $181,733 - $81,971 $263,704 Of the General Fund's $886,095 due from State of Maine, $307,916 represents school subsidies and State agency billings, $275,933 represents revenue sharing and $142,327 represents general assistance claims not yet received. 5. Fixed Assets A summary of the activity in the General Fixed Asset Account Group for fiscal year ended June 30, 1999, follows: Capital Balance Transfers & Project Balance June 30, 1998 Additions Deletions Close-outs June 30, 1999 Land, buildings, and construction in process: Land $5,198,491 - - - $5,198,491 School Land 950,988 400,000 - - 1,350,988 Buildings 5,411,127 1,631 - 51,855 5,464,613 School Buildings 26,235,769 26,800 - - 26,262,569 Construction in process 7,646,374 2,082,797 - (1,182,132) 8,547,039 Total land, buildings, and construction in process 45,442,749 2,511,228 - (1,130,277) 46,823,700 Equipment: Vehicles 6,551,780 95,114 (120,073) 857,110 7,383,931 Machinery & Equipment 4,055,513 165,835 - 273,167 4,494,515 Schoolother 4,620,026 635,483 - - 5,255,509 Total equipment 15,227,319 896,432 (120,073) 1,130,277 17,133,955 Total fixed assets $60,670,068 $3,407,660 $120 073 - $63,957,655 II - 20 City of Bangor, Maine Notes to Financial Statements June 30, 1999 5. Fixed Assets (Continued) A summary of proprietary fund type properiy, plant, and equipment at June 30, 1999, follows: ' Land $979,809 Buildings, plant and equipment 46,821,281 Pipelines and mains 32,599,450 Airport operational assets 193,813,218 Parking structures 6,459,608 Construction in process 8,452,025 289,125,391 Less: accumulated depreciation 107,252,122 $181,873,269 In 1999, total proprietary fund type interest incurred was $2,196,021. Of that amount, $2,170,136 was charged to operations and $25,885 was capitalized during the year. 6. Leases Operating Leases The Airport and the Economic Development Fund are the lessors of various buildings and land parcels, under operating leases expiring in various years through 2036 and 2b33, respectively. Minimum future rentals to be received on noncancelable leases as of June 30, 1999 are: Economic Year ended June 30 Airport Development_ 2000 $1,792,053 $249,359 2001 1,587,557 230,724 2002 1,461,130 207,159 2003 1,354,740 205,686 2004 829,349 180,719 Subsequent to 2004 7,412,542 2,509,194 Total Minimum Future Rentals $14,437,371 $3,582,841 Airport minimum future rentals do not include contingent rentals that may be received under certain leases of buildings because of revenue produced or usage in excess of specified amounts. Contingent rentals for the Airport in 1999 were $1,666,000. II - 21 City of Bangor, Maine Notes to Financial Statements June 30, 1999 6. Leases (Continued) Capital Leases The City's General Fund currently leases heavy machinery and copiers under capital leases. Following is a schedule, by yeaz, of future minimum lease payments under these leases, together with the present value of the net minunum lease payments as of June 30, 1999. General Year Ended June 30 Fund 2000 $93,171 2001 78,216 2002 78,216 2003 78,216 2004 67,302 395,121 Less: Interest 42,386 Present value of net minunum lease payments $352,735 7. Other Assets Other assets are comprised of the following: Capital Enterprise Projects Fund Funds Tax mortgages - - Investment of bond proceeds 1,191,051 3,046,857 Loans receivable - 2,242,165 Operating rights (net of amortization) - 212,083 Bond issuance costs (net of amortization) - 249,038 Property held for resale - 1,395,327 Total other assets $1,191,051 $7,145,470 8. Deferred Revenue Defened revenue consists of the following: General Special Enterprise Fund Revenue Funds Funds Taxes $2,132,584 - - Loans - 4,162,752 - Advance Deposits 67,545 - 436,911 $2,200,129 $4,162,752 $436,911 Deferred tax revenue consists of those tax revenues not available to meet the needs of the cunent period. Defened revenue of the Special Revenue Fund represents fizture revenue equal to loans made pursuant to the Community Development, Urban Development Action Grants, and Econoiruc Incentive Revolving Loan Fund over the past years. Pursuant to the terms of these grants, loans made are recognized as an expenditure in the Special Revenue Fund when they occur with corresponding recogmtion of grant revenues. II - 22 City of Bangor, Maine Notes to Financial Statements June 30, 1999 8. Deferred Revenue (Continued) Further, pursuant to regulations governing such funds, repayment of loans thus outstanding are considered program income as received in subsequent years and are available to the recipient for additional use within the program. The future revenue associated with the loans outstanding is, therefore, reflected as deferred revenue. 9. Long-Term Debt The following is a summary of long-term debt transactions of the City for the period ended June 30, 1999: General Limited Obligation Obligation Revenue Debt Bonds Total Debt payable at June 30, 1998 $61,655,300 $5,160,000 $66,815,300 New debt issued 6,186,200 - 6,186,200 Debt retired (4,950,684) (220,000) (5,170,684) Debt payable at June 30, 1999 $62,890,816 $4,940,000 $67,830,816 The Ciry is subject to the laws of the State of Maine which limit the amount of long-term debt to 15 percent (depending on how the funds will be used) of its last full state valuation. The statutory limit for June 30, 1999 was $212,692,500 with a general obligation debt margin of$149,801,684. The following is a summary, by purpose, of the outstanding debt of the City at June 30, 1999, and related limitations: Max. Allowable Percent of State � Debt Assessed Value of Statutory Debt Outstanding $1,417,950,000 Limit Margin School $11,950,135 10.0% $141,795,000 $129,844,865 Sewer Utiliry 32,112,035 7.5% 106,346,250 74,234,215 All other * 18,828,646 7.5% � 106,346,250 87,517,604 Total $62,890,816 15.0% $212,692,500 $149,801,684 * All other debt outstanding is comprised of the following: General Fund $9,304,260 49.5% Parking Fund 3,865,566 20.5% Bass Park Fund 1,319,520 7.0% Ciry Nursing Fund 761,777 4.0% Economic Development Fund 3,577,523 18.9% $18,828,646 100.0% � The Bangor International Airport has $4,940,000 of limited obligation revenue bonds outstanding at June 30, 1999, the proceeds of which were used to finance terminal expansion. The interest rate varies from 5.00% to 6.70% with a final maturity date of October, 2012. II -23 City of Bangor,Maine Notes to Financial Statements June 30, 1999 • 9. Long-Term Debt(Continued) General obligation debt payable at June 30, 1999,consisted of the following issues: Final Interest Mahirity Rates Date 1981 Pem�anent Public Improvements 10 06/O1/O1 1988 Permanent Public Improvements 7.37 to 8.60 10/28/07 1989 Permanent Public Improvements 6.70 to 7.00 09/O1/09 1990 Permanent Public Improvements 7.00 to 7.10 08/O1/10 � 1991 Permanent Public Improvements 5.00 10/O1/12 1992 Permanent Public Improvements 5.00 to 5.30 11/O1/12 1992 Permanent Public Improvements 4.75 to 5.40 11/O1/02 1993 Permanent Public Improvements 3.30 to 4.65 10/O1/00 1993 SRF Treatment Plant 2.46 10/O1/13 1993 SRF Combined Sewer Overflow 2.45 10/O1/13 1994 Refunding Bonds 2.35 to 5.20 08/O1/10 1996 Permanent Public Improvements 5.05 to 5.85 09/O1/15 1996 SRF Sewer 3.52 10/O1/16 1996 General Obligation Notes * 6.00 to 6.90 OS/01/16 1996 Permanent Public Improvements 5.35 to 6.50 09/Ol/16 1996 General Obligation Notes(Waterfront) 4.10 10/18/99 1997 SRF Sewer 3.03 10/Oi/17 1997 Permanent Public Improvements 4.875 to 5.30 09/O1/17 1998 General Obligation Notes * 6.19 11/1/17 1999 General Obligation Notes 3.80 12/17/O1 � 1999 Permanent Public Improvements 4.20 06/O1/19 1999 General Obligation Notes 5.00 07/O1/17 1999 General Obligation Notes * 6.00 OS/O1/04 Total Less current portion(due fiscal year 2000) * The notes are,at the option of the hoider,due and payable in ninety days after written nodce from the holder is given to the City. II-24 Authorized General Enterprise Total and Issued City School Funds June 30, 1999 3,065,000 56,100 218,900 - 275,000 3,200,000 - - 900,000 900,000 13,025,000 67,000 398,000 285,000 750,000 9,265,000 172,000 - 798,000 970,000 19,000,000 - - 13,300,000 13,3�,000 12,550,000 - 4,685,000 4,085,000 8,770,000 575,000 215,000 - - 215,000 3,314,000 927,950 - 11,050 939,000 1,864,000 - - 1,398,000 1,398,000 1,986,000 - - 1,489,500 1,489,500 11,155,000 315,308 3,058,235 7,121,457 10,495,000 1,030,000 820,000 - - 820�� 2,942,923 - - 2,709,702 2,709,702 975,000 930,000 - - 930,000 1,500,000 1,400,000 - - 1,400,000 �pp,ppp _ - 233,333 233,333 2,452,362 - - 2,352,091 2,352,091 8,500,000 3,167,302 3,390,000 1,672,698 8,230,000 280,000 276,000 - - 276,000 2,396,700 - - 2,396,700 2,396,700 3,394,000 957,600 200,000 2,236,400 3,394,000 259,848 - - 251,990 251,990 395,500 - - 395,500 395,500 $103,825,333 9,304,260 11,950,135 41,636,421 62,890,816 981,588 1,057,076 3,021,433 5,060,097 $8,322,672 $10,893,059 $38,614,988 $57,830,719 II-25 City of Bangor; Maine Notes to Financial Statements June 30, 1999 9. Long-Term Debt (Continued) Overlapping Debt The City is located in Penobscot County and, as such, is responsible for its proportionate share (23.42%) of the County's short term and long term debt outstanding which, at June 30, 1999 was $3,160,599. The City is also a member of Maine Vocational Region Four (M.V.R. No. 4), which is comprised of three cities, including Bangor, 11 towns, one plantation, four S.A.D.'s and one C.S.D. The City is responsible for its proportional share (33.59%) of M.V.R. No. 4's long-term debt which, at June 30, 1999 was $220,000. The City's portion of direct and overlapping debt is summarized below: Percentage Debt Applicable Overlapping Units Outstanding to the City Debt City $62,890,816 100.00% $62,890,816 Airport - Limited Obligation Revenue Debt 4,940,000 100.00% 4,940,000 County 3,160,599 23.42% 740,212 M.V.R. No. 4 220,000 33.59% 73,898 $71,211,415 $68,644,926 The following table sets forth the ratio of general obligation debt to assessed valuation, by fund type; and per capita debt ratios, by fund type; for the fiscal year ended June 30, 1999. General Fund Enterprise City School Funds Total Amount of Direct Debt by Fund $9,304,260 $11,950,135 $46,576,421 $67,830,816 Per Capita Direct Debt by Fund $302 $388 $1,513 $2,204 Per Capita Direct and Overlapping Debt N/A N/A N/A $2,230 Direct Debt as a Percent of Assessed Valuation 0.66% 0.84% 3.28% 4.78% Direct and Overlapping Debt as a Percent of Assessed Valuation N/A N/A N/A 4.84% II - 26 City of Bangor, Maine Notes to Financial Statements June 30, 1999 9. Long-Term Debt (Continued) Annual principal and interest payment requirements for all debt outstandirsg as of June 30, 1999, is as follows: General Limited Obligation Obligation Debt Revenue Debt � Year Ended Total June 30 Principal Interest Principal Interest Requirement 2000 $5,060,097 $2,811,107 $230,000 $306,770 $8,407,974 2001 4,592,892 2,559,671 245,000 293,643 7,691,206 2002 6,427,001 2,308,614 260,000 279,308 9,274,923 2003 4,017,005 2,080,906 275,000 263,789 6,636,700 2004 4,091,456 1,883,951 290,000 247,045 6,512,452 2005 -2009 19,323,452 6,685,329 1,755,000 929,252 28,693,033 2010 - 2014 14,347,972 2,591,388 1,885,000 263,139 19,087,499 2015 - 2019 5,030,941 495,445 - - 5,526,386 $62,890,816 $21,416,411 $4,940,000 $2,582,946 $91,830,173 As of June 30, 1999, the amount of defeased debt outstanding but removed from the General Long-Term Debt Account Group and Enterprise Funds is $3,163,900 and $6,541,100, respectively. The Sewer Utility and Parking enterprise funds have recorded a deferred amount on refunding, which is the difference between the reacquisition price (funds required to refund old debt) and the net carrying value of the old debt. The deferred amount on refunding will be amortized over the remaining life of the old debt. Three series of the General Obligation notes aggregating $1,606,500 are held by the City's Airport Fund at fixed, taxable market rates of interest These Notes are structured with a put feature which, upon certain precedent conditions, allows the Airport to present them for redemption to the City's General Fund. It is management's intention, should a put occur, to fund it by passing the Note along to its Sewer Fund, where it will be converted to a three to five year fixed rate note with level debt service, albeit without a put option. The following sets forth the changes in liabilities reported in the general long term debt account group during the year ended June 30, 1999: Balance Balance June 30, 1998 Additions Reductions June 30, 1999 General obligation debt $22,188,559 $1,157,600 $2,091,764 $21,254,395 Obligations under capital leases 287,274 196,629 131,168 352,735 Accrued compensated absences 1,294,225 787,013 720,830 1,360,408 Unfunded actuarial liabiliry 30,270,524 883,402 - 31,153,926 Long-term obligation for self insurance 1,940,064 279,251 69,811 2,149,504 $55 980 646 $3 303 895 $3 013 573 $56 270 968 II - 27 City of Bangor, Maine Notes to Financial Statements June 30, 1999 10. Contributed Capital A summary of changes in contributed capital follows: Contributed capital at June 30, 1998 $115,452,076 Contributions 1,778,110 Depreciation on assets acquired with contributions (4,450,024) Contributed capital at June 30, 1999 $112,780,162 11. Nonexpendable and Expendable Trust Fund Balances Nonexpendable and Expendable Trust Fund Balances were comprised of the following at June 30, 1999: Unexpended Principal Income 1Von�endable Trusts Cemetery: Perpetual Care $386,615 $134,800 Parks: Bass Park - 39,715 Arthur Chapin Fund 14,538 3,135 14,538 42,850 City Missionary: Hiram Fogg 1,000 3,647 Louis & Sophia Kirstein 500 2,635 Hiram Oliver 2,000 7,948 Penobscot Association for the Blind 11 7 Lorenzo Sabine 1,000 2,239 Stetson 12,000 21,499 16,511 37,975 Education: Bangor High School 200 1,799 French Medal 35,738 26,982 Holton Public School 2,000 2,721 Louis & Sophia Kirstein 5,000 6,906 A.E. Webber, Jr. 1,200 694 44,138 39,102 II - 28 City of Bangor, Maine Notes to Financial Statements June 30, 1999 11. Nonexpendable and Expendable Trust Fund Balances (Continued) � Unexpended Principal Income Aid for Aged Women: Charles Adams $10,000 $8',955 Thomas Upham Coe 3,000 2,686 Anna H. Pierce 4,000 3,581 Annie Stetson 5,067 4,410 George Stodder 11,000 9,850 Wakefield 10,000 13,524 43,067 43,006 Other Funds: Dorthea Miller 507 623 Bangor Firemen's Relief 7,639 778 Kirstein City hospital 507 2,276 Arthur Morey 1,013 5,893 Melvin Murch 5,733 20,849 O'Connell Trust 1,000 8,431 Twitchell Trust - 174 Flora Seavey 1,500 1,696 Charlotte Hall 5,984 23,534 Pfaff Trust 811 2,499 Porter - Pulsifer 5,000 13,833 Jewish War Veterans 758 419 30,452 81,005 Revolving Loan: Sophia Kirstein Student Loan 130,663 - Tota.l nonexpendable trusts $665,984 $378,738 Ex�endable Trusts Dental Clinic $59,284 $7,489 Preservation of Records 35 64 CNF Wheelchair Van 4,231 1,044 Adopt a Park 29,065 10,927 Park Woods Children 7g 6 City Forest 12,827 914 BFD Imaging 33,054 6,895 Paul Bunyan 100 - USS Maine Monument 9,531 - Kenduskeag Stream Trail 1,335 17 Total expendable trusts $149,540 $27,356 II - 29 City of Bangor, Maine Notes to Financial Statements June 30, 1999 12. Designated Fund Balance General Fund_ Designated fund balances represent those portions of the General Fund balance specifically designated for the following: 1999 1998 Departmental balances carried forward $15,393 $19,882 School department - regular 574,146 255,592 adult education 40,342 22,816 special revenue 180,784 374,959 school lunch 74,269 19,335 trust and agency 163,363 122,812 Total balances carried 1,048,297 815,396 Accrued summer teacher payroll (1,707,829) (1,648,242) Pooled equipment account 666,620 532,959 Bus equipment 31,679 17,871 Fire equipment account 1,468 41,306 Improvement 658,878 471,229 Workers' compensation 2,012,057 1,783,761 Self insurance 137,447 156,303 Cameron stadium 101,111 95,763 Landfill closure 140,840 133,390 Cascade park maintenance 4,960 2,060 Demolition 7,301 6,451 PEG capital support 147,043 75,000 Pickering Square Dev District 100,000 - Arbitrage rebate - General Fund 28,846 27,330 School department 156,358 148,142 Total General Fund designated fund balance $3,535,076 $2,658,719 Ca�ital Fund: - Designated fund balance represents amounts that have been appropriated by council authorization to finance completion of specific capital projects. - IV. Other Information 1. Risk Management The Ciry is exposed to various risks of losses related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City currently reports all of its risk management activities in its General and Enterprise Funds. Claims expenditures, liabilities and reserves are reported when it is probable that a loss has occuned and the amount of the loss can be reaonable estimated. These losses include an estimate of claims that have been incurred but not reported. The City purchases coverage under a number of commercially available insurance policies such as; commercial general liability, auto, property damage and crime and dishonesty, each with limits and deductibles deemed prudent given the risks, cost of coverage and the City's ability to fund certain types of losses. For those claims covered by commercial insurance, the amount of settlements have not exceeded the coverage for the years ended June 30, 1999, 1998 and 1997. II - 30 City of Bangor, Maine Notes to Financial Statements June 30, 1999 1. Risk Management (Continued) The City is self-insured for its workers' compensation liability. Reserves are actuarially determined each year to assure funding adequacy. In addition, the City purchases excess workers' compensation insurance to limit its financial risk. At June 30, 1999, the amount of the self-insurance liabilities was $3,241,974. This liability is the City's best estimate based on available information. Changes in the reported liability since July 1, 1997, resulted from the following: _ Workers' All Other Self- Compensation Insured Risks Total Unpaid Claims as of July 1, 1997 $2,847,990 $148,752 $2,770,439 Incuned Claims 285,811 - 285,811 Payments (747,151) - (747,151) Changes in estimates and other adjustments 492,438 7,551 499,989 Unpaid Claims as of June 30, 1998 2,879,088 156,303 2,809,088 Incuned Claims 171,446 - 171,446 Payments (458,557) (27,116) (485,673) Changes in estimates and other adjustments 512,550 8,260 520,810 Unpaid Claims as of June 30, 1999 $3,104,527 $137,447 $3,015,671 Comprised of: Current obligations of the General Fund $607,890 - $607,890 Enterprise funds 484,580 - 484,580 General long term debt account group 2,012,057 137,447 2,149,504 Total $3,104,527 $137,447 $3,241,974 2. Tax Increment Financing Districts . The City has established TIF (tax increment fmancing) districts, all of which dedicate a portion of captured real estate and personal property tax increment revenues over staggered twenry year periods for the following purposes: B.I.A, Murcicipal Develo�ment District No. 1; Partially financed$27.5 million of capital expenditures at manufacturing facilities leased by General Electric Company from Bangor International Airport. The captured assessed value is returned to General Electric via reduced rental payments at a rate of 50% for personal property and 100% for real property. This amounted to$760,477 for the year ended June 30, 1999. Main Street Munici�al Develo�ment District: Assisted Penobscot Development Limited Liability Company in financing the extraordinary costs of acquisition and environmental remediation of the former Gasworks site on Main Street, ultimately to provide land area necessary for the construction of a 54,000 square foot supermarket in a Community Development project area. Pickerin�Square Muni�al Develo�ment District_ Assisted Realty Resources Chartered in a major redevelopment project by converting the Pickering Square section of the former Freese's Department Store building into 34 units of affordable housing. II - 31 City of Bangor, Maine Notes to Financial Statements June 30, 1999 3. Segment Information = Enterpcise Funds There are eight services provided by the City which are financed by user charges - Sewer Utility, Airport, Park Woods, City Nursing Facility, Parking, Bass Park, Municipal Golf Course and Economic Development. The key financial data for the period ended June 30, 1999, for those services are as follows: Sewer Park Utility Airport Woods Operating revenue $6,315,793 $9,148,692 $259,984 Operating expenses: Other 2,540,503 7,059,474 251,415 Depreciation and amortization * 1,416,464 5,396,622 94,492 3,956,967 12,456,096 345,907 Operating income (loss) 2,358,826 (3,307,404) (85,923) Nonoperating revenue (expense) (1,175,642) 533,778 5,802 Transfers from other funds - - - Operating subsidy - - 14,852 Net income (loss) $1,183,184 ($2,773,626) ($65,269) Additions to contributed capital $711,664 $853,213 - Acquisition of property, plant and equipment $1,956,872 $3,840,149 $1,587 Total assets $60,708,708 $136,725,241 $1,885,566 Net working capital $2,810,852 $4,458,438 ($56,606) General and lunited obligation revenue debt payable $32,112,035 $4,940,000 - Fund equity (deficit) $27,824,215 $129,792,809 $1,635,804 * Includes depreciation and amortization of$4,450,024 on assets acquired with grants and contribution II - 32 City Bass Municipal Economic Nursing Parking Park Golf Course Development Total $2,217,683 $699,999 $1,141,995 $721,923 $230,554 $20,736,623 2,736,468 438,171 1,403,623 341,260 63,325 14,834,239 95,002 296,102 284,021 75,125 31,600 7,689,428 2,831,470 734,273 1,687,644 416,385 94,925 22,523,667 (613,787) (34,274) (545,649) 305,538 135,629 (1,787,044) (12,539) (224,972) (50,424) 24,710 15,071 (884,216) - - 20,000 - 19,002 39,002 184,371 356,797 349,058 - - 905,078 ($441,955� $97,551 ($227,015) $330,248 $169,702 ($1,727,180) - - - - $233,334 $1,798,211 $173,977 $366,066 $443,630 $485,626 $1,621,478 $8,889,385 $1,485,848 $3,997,226 $2,448,507 $1,639,678 $5,410,143 $214,300,917 ($1,293,852) ($196,343) ($1,528,138) $366,351 ($192,112) $4,368,590 $761,777 $3,865,566 $1,319,520 - $3,577,523 $46,576,421 ($1,007,604) $185,202 ($516,907) $1,578,283 $1,738,009 $161,229,811 II - 33 ` City of Bangor, Maine Notes to Financial Statements June 30, 1999 4. Contingent Liabilities Litigation In September 1992, the City received a "Notice of Potential Responsibiliry" under Maine's Uncontrolled Hazardous Substance Sites law. The notice involves the planned cleanup of several hazardous waste disposal sites. The City may be liable because the sites were formerly operated by the company the City used for the disposal of waste oil during the 1960s - 1980s. The Maine Department of Environmental Protection's (DEP) preliminary estimate of cleanup costs at the primary site exceeds $10,000,000. The City is listed as a "de minimus" contributor in the DEP's various notices. As such it is estimated that the City's cost will ultimately range between $80,000 - $100,000. In February 1998, the City was served with Notification of Potential Liability by the Federal Environmental Protection Agency (EPA) in connection with that Agency's efforts to clean up a disposal site. The City is among approximately 500 potentially responsible parties. It is currently estunated that the Ciry's cost will not exceed $150,000. The City is subject to a wide variety of federal and state laws and regulations relating to land use, water resources, sewage disposal, the use, storage, discharge, emission and disposal of wastes and other environmental matters. The City believes that its properties and operations are presently in material compliance with all land use and environmental laws. Failure to comply with such laws, however, could result in severe penalties that could adversely affect the Ciry. The City is not aware of any environmental conditions or non-compliance, the remediation or correction of which, the City believes, would have a material adverse impact on the financial condition of the City. The City is not subject to any pending or threatened proceedings or actions involving environmental matters. There are various other claims and suits pending against the City which arise in the normal course of the City's activities. In the opinion of Ciry management, the ultimate disposition of these various claims and suits will have no material effect on the financial position of the City. 5. Retirement Introduction The City of Bangor provides retirement pensions for its employees through a number of vehicles, including a Defined Benefit Pension Plan, Defined Contribution Pension Plan and Social Security. The Defined Benefit Pension Plan is administered through the Maine State Retirement System. The Defined Contribution Pension Plans are section 401(a) and 457 Defened Compensation Plans administered by ICMA/RC. Finally, those employees not eligible for coverage under either the Defined Benefit or Defined Contribution Plans are provided fizll Social Security coverage. A. Defned Beneft Pension Plans Descri�tion o�the Plan The City contributes to the Maine State Retirement System Consolidated Plan, a cost sharing multiple-employer public employee retirement system established by the Maine State legislature. The Maine State Retirement System provides retirement and disability benefits, annual cost-of-living II - 34 City of Bangor, Maine Notes to Financial Statements June 30, 1999 5. Retirement (Continued) and death benefits to plan members and beneficiaries. Maine Statutes assign the authority to establish and amend benefit provisions to the Maine State Retirement System Board of Trustees. The Maine State Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for the Consolidated Plan. That report may be obtained by writing to Maine State Retirement System, 46 State House Station, Augusta, Maine 04333-0046 or by calling 1-800-451-9800. Fundin.�Polic� Plan members are required to contribute 6.5% of their annual covered salary and the City of Bangor is required to contribute an actuarially detemiined rate. The current rate ranges from 5.90% to 14.70% of annual covered payroll. The contribution rates of plan members and the City of Bangor are established and may be amended, based on the type of plan, by the Maine State Retirement System Board of Trustees. The City's contributions to the Maine State Retirement System Consolidated Plan, for the years ended June 30, 1999, 1998 and 1997 were $1,580,742, $1,918,155 and $1,939,735, respectively, equal to the required contributions for each year. Unfunded Actuarial Liabili� Upon joining the consolidated plan on July 1, 1997, the City's initial unfunded unpooled actuarial liability (IUUAL) was calculated. The IUUAL represents the remaining amount of the pension liability upon transitioning to the Consolidated Plan from a participating local district. The City's IULTAL at the date of transition amounted to $30,570,400 and is bemg amortized over a period of 28 years. At June 30, 1999, the remaining balance was $30,751,234 and is being reported in the City's General ' Long-Term Debt Account Group in accordance with Government Accounting Standards Board Statement No. 27, Accounting for Pensions by State and Local Govemment Employees. For the years ended June 30, 1999, 1998 and 1997, the City made payments towards its IUUAL of$1,995,036, $1,882,104 and $1,902,000, respectively. . Teacher Grou� All school teachers, plus other qualified educators, participate in the Maine State Retirement System's teacher group. The teacher's group is a cost-sharing plan with a special funding situation, established by the Maine State legislature. The Maine State Retirement System provides retirement and disability benefits, annual cost-of-living adjustment, and death benefits to plan members and beneficiaries. Maine Statutes assign authority to establish and amend benefit provisions to the Maine State Retirement System Board of Trustees. The Maine State Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for the Teacher's Group. That report may be obtained by writing to Maine State Retirement System, 46 State House Station, Augusta, Maine 04333-0046 or by calling 1-800-451-9800. II - 35 City of Bangor, Maine Notes to Financial Statements June 30, 1999 5. Retirement (Continued) Fundin�Pol� Plan members are required to contribute 7.65% of their compensation to the retirement system. The State of Maine Department of Education is required, by the same statute, to contribute the employer contribution which amounts to $3,491,790 (20%) for the fiscal year 1999. This amount has been reported as intergovernmental revenue and education expenditure in the GAAP basis financial statements (Exhibit 2). There is no contribution required by the School except for federally funded teachers, for which the school contributed 20% of their compensation. This cost is charged to the applicable grant. Flistorical Trend In�ormation Historical trend information for the Consolidated Plan is not relevant, as the year ended June 30, 1995 was the first year of the Consolidated Plan and Participating Local Districts did not enter the Plan until 1996. Therefore, the data is not comparable. If available, this information would be useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. B. Defined Contribution Pension Plan The City of Bangor provides pension benefits for certain of its full-time employees through both 401(a) and 457 Deferred Compensation Plans (both of which are defined contribution plans (DCPs)) administered by ICMA/RC. In a DCP, benefits depend solely on amounts contributed to the plan plus investment earnings. Participation for fixed-term contract employees is provided in lieu of the defined benefit plan through the Maine State Retirement System. Covered employees are eligible to participate and are fully vested from the date of employment. The City contributes at various rates depending upon employment contracts. The contribution rates vary from 10.0% - 15.0% of annual earnings. The covered payroll in fiscal year 1999 was approximately $483,764 and City contributions totaled approximately $53,882. In addition, all City employees may participate in the 457 plan and defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. C._Social_Secu�t� The City of Bangor does not have a section 218 agreement to provide full social security coverage to it's employees. The City provides full social security coverage to part-time, seasonal and temporary employees under the Ommbus Budget Reconciliation Act of 1990, and IRS regulations which became effective July 1, 1991. 6. Landfill Closure and Postclosure Care Costs Federal regulations (Subtitle 'D') stipulate that landfills which have not accepted MSW (Municipal Solid Waste) in recent years are exempt from specific postclosure care and monitoring requirements, provided that such landfills are closed prior to October 8, 1994, and in accordance with applicable State regulations, subject to certain construction requirements. II - 36 Ciry of Bangor, Maine Notes to Financial Statements June 30, 1999 6. Landfill Closure and Postclosure Care Costs (Continued) In June 1994, the Maine State Legislature approved new State landfill closure regulations drafted by the Maine Department of Environmental Protection. These regulations included a "Reduced Closure Option" provision which allowed qualifying low risk landfills to be closed prior to October 8, 1994 if federal construction standards were met, with no further requirements for specific postclosure monitoring and maintenance programs. The City of Bangor's Kittredge Road Landfill qualified for the "Reduced Closure Option" and is in full compliance with its provisions. The estimated liability for landfill closure and postclosure care costs is $177,336 as of June 30, 1999, which is based on 100% usage of the landfill. The estimated total current cost of the landfill closure and postclosure care is based on the amount that would be paid if services required to close, monitor and maintain the landfill were acquired as of June 30, 1999. The actual cost of closure and postclosure should not change significantly from the amount estimated: At June 30, 1999 $177,336 of the closure and postclosure care costs had been funded by the issuance of general obligation bonds, reimbursement from the State of Maine and the interest earnings thereon. 7. Subsequent Events In December 1996, the City authorized the issuance of up to $5,000,000 in general obligation bonds, the proceeds of which are to be used as a 45% match to a grant awarded by the Environmental Protection Agency (EPA). The gross proceeds of the grant and debt will be used to continue the City's compliance with an EPA consent decree governing combined sewer overflow. The City expects to issue $1,120,000 of the remaining authorized amount within the next fiscal year. To date $2,818,300 has not been issued. In September 1998, the City authorized the issuance of up to $2,000,000 in general obligation bonds. Proceeds will be used to finance improvements and rehabilitation of the lower three floors of the former Freese's building to enable additional residential development to take place on the top three floors. In August 1999, the City authorized issuance of up to $1,332,000 in general obligation bonds. The proceeds will be used to fund various projects such as; acquisition of motor pool vehicles, improvements to Sawyer Arena, a Bass Park facility assessment and improvements as well as other building and infrastructure improvements. 8. Restatement of Retained Earnings The Airport Fund's contributed capital and reserved retained earnings for June 30, 1998 were restated to reflect the reclassification of passenger facility charges. The effect of this change was to increase the Airport Fund and overall Enterprise Funds contributed capital by $1,601,273 with a corresponding decrease in reserved retained earnings. II - 37 G�eneral Fund � The Gener�l �und is used to account for resources traditionally associated with the government, which are not required legally or by sound financial management, to be accounted for in another fund. : Schedule A-1 City of Bangor, Maine Balance Sheets General Fund June 30, 1999 and 1998 1999 1998 Assets• Cash • $908,583 $1,980,308 Investments 9,163,342 5,497,579 Receivables: Taxes 2,312,134 2,354,235 Accounts 834,698 1,172,256 Allowance for uncollectible (286,226) (287,440) Due from other funds 3,292,560 2,644,560 Due from other governments 1,208,339 1,685,145 Inventories, at cost 323,700 284,158 Prepaid items 27,974 26,631 Other assets - 7,471 Total assets $17,785,104 $15,364,903 Liabilities: Accounts payable $1,254,759 $1,108,754 Workers' compensation 607,890 607,890 Accrued payroll and withholdings 2,526,365 2,406,883 Taxes collected in advance 29,707 18,249 Defened revenue 2,200,129 2,190,696 Total liabilities 6,618,850 6,332,472 Fund balances: Reserved for: Encumbrances 475,962 301,979 Prepaid items 27,974 26,631 Due from other funds 2,885,000 2,100,000 Unreserved: Designated - refer to Note 12 3,535,076 2,658,719 Undesignated 4,242,242 3,945,102 Total fund balances 11,166,254 9,032,431 Total liabilities and fund balances $17,785,104 $15,364,903 � II - 38 �chedule�-2 City of Bangor, Maine Statement of Revenues, Expenditures, and Changes in Unreserved/Undesig►ated Fund Balance-Budget and Actual-Budgetary Basis General Fund For the Fiscal Year Ended June 30, 1999 Balances Carried Variance 07/O1/98 Budget Actual Surplus Carried Revenues• Taxes: Real and personal property - $32,271,196 $32,396,697 $125,501 - Change in defened property tax revenues - - (21,818) (21,818) - Tax increment financing district - (760,477) (760,477) - - Payment in lieu of taxes - 102,950 102,950 - - Automobile and boat excise taxes - 3,003,000 3,266,421 263,421 - Interest on delinquent taxes - 275,000 254,943 (20,057) - Totaltaxes - 34,891,669 35,238,716 347,047 - Intergovernmental revenue: State revenue sharing - 2,890,000 3,081,109 191,109 - Schoolsubsidy - 9,770,270 9,212,650 - (557,620) Other -Municipal - 1,900,703 1,893,799 (6,904) - School - 1,981,218 3,546,388 - 1,565,170 Total intergovemmental revenue - 16,542,191 17,733,946 184,205 1,007,550 Other revenue: Licenses and permits - 357,220 499,483 142,263 - Charges for services - Municipal - 4,259,862 4,661,824 401,962 - School - 3,067,393 3,217,594 - 150,201 Fines, forfeits, and penalties _ - 25,350 24,813 (537) - Revenue from use of money -Municipal - 697,266 600,019 (97,247) - and property -School - - 66 - 66 Totalotherrevenue - 8,407,091 9,003,799 446,441 150,267 Total revenues - 59,840,951 61,976,461 977,693 1,157,817 Expenditures:. General government: Council - 23,440 24,235 (795) - Executive - 549,029 424,773 124,256 - City clerk - 320,659 299,670 20,989 - Finance - 1,214,101 1,223,299 (9,198) - Assessment - 287,520 273,478 14,042 - Insurance - 71,450 76,119 (4,669) - pl�g - 193,765 190,160 3,605 - �g� - 234,072 233,985 87 - Personnel - 112,227 107,640 4,587 - Economic develop and code enforcement - 527,619 517,887 9,732 - Total general government - 3,533,882 3,371,246 162,636 - Continued on facin a e � gP g � II-39 �Ehed�e�i� c�n�� City of Bangor, Maine Statement of Revenues, Expenditures, and Changes in Unreserved/Undesignated Fund Balance-Budget and Actual-Budgetary Basis General Fund For the Fiscal Year Ended June 30, 1999 Balances Carried Variance 07/O1/98 Budget Actual Surplus Carried Expendituresscon't): Public safety: Police - 4,805,314 4,743,828 61,486 - Fire - 5,436,052 5,582,292 (146,240) - Total public safety - 10,241,366 10,326,120 (84,754) - Health, welfare, and recreation Health and welfare - 1,757,498 1,705,099 52,399 - Parks and recreation - 887,368 945,953 (58,585) - Total health, welfare and recreation - 2,644,866 2,651,052 (6,186) - Public buildings and services: Public services - 7,227,582 7,321,657 (94,075) - Total public buildings and services - 7,227,582 7,321,657 (94,075) - Other agencies: Taxes paid to county - 1,232,230 1,232,230 - - Private School services - 134,652 127,322 7,330 - Downtown Development District - 40,871 40,871 - - Other agencies 19,882 57,500 61,989 - 15,393 Public library - 929,550 929,550 - - - Total other agencies 19,882 2,394,803 2,391,962 7,330 15,393 Education: Regular 255,592 26,978,669 27,526,197 - (291,936) Adult education 22,816 601,784 542,653 - 81,947 Specialrevenue 374,959 1,155,827 1,447,040 - 83,746 Schoollunch 19,335 955,774 937,358 - 37,751 Trustand agency 122,812 1,514,226 1,473,459 - 163,579 Total education 795,514 31,206,280 31,926,707 - 75,087 Other appropriations: Pensions and other fringe benefits - 75,508 10,299 65,209 - Contingent - 32,940 - 32,940 - Debt service - 1,345,983 1,340,136 5,847 - Tax incremental financing payments - 118,154 121,516 (3,362) - Total other appropriations - 1,572,585 1,471,951 100,634 - Totalexpenditures 815,396 58,821,364 59,460,695 85,585 90,480 Excess(deficiency)of revenues overexpenditures (815,396) 1,019,587 2,515,766 1,063,278 1,248,297 Continued on following page II-40 Schedule A-2�con't� City of Bangor, Maine Statement of Revenues, Expenditures, and Changes in Unreserved/Undesignated Fund Balance - Budget and Actual -Budgetary Basis General Fund For the Fiscal Year Ended June 30, 1999 Balances Carried Variance 07/Ol/98 Budget Actual Surplus Carried Other financin�sources_(uses):. Appropriated from designated fund balances - 569,766 362,286 (7,480) (200,000) Sale of assets - 1,000 27,342 26,342 - Transfers to other funds - (735,836) (735,836) - - Transfers from other funds - 50,561 50,561 - - Operating subsidy - (905,078) (905,078) - - Total other fmancing sources (uses) - (1,019,587) (1,200,725) 18,862 (200,000) Excess (deficiency)of revenues over expenditures and other sources (uses) ($815,3� - $1,315,041 1,082,140 $1,048,297 Unreserved/Undesignated fund balance, July 1 3,945,102 Appropriation to designated for subsequent years ��gs>�) Unreserved/Undesignated fund balance, June 30 $4,242,242 II-41 � Special Revenue Funds Special Revenue funds are used to account for specific revenues that are lega(ly restricted to expenditures for particular purposes. The following are the City's Special Revenue funds: Community Development - Accounts for federal grants obtained and expended under the Block Grant : Housing and Community Development Act of 1974, as amended, for the development of viable urban communities. Urban Development - Accounts for federal grants obtained and expended under the Action Grant Housing and Community Development Act of 1974, as amended, for the redevelopment of the downtown commercial core of the City. Economic Incentive - Accounts for low interest loans to business's within the City of Revo[ving Loan Fund Bangor for establishment, expansion or redevelopment purposes. Job creation or retainage principally for low or moderate income persons is a major factor in loan approval. Funding is provided from the U.S. Department of Housing and Urban Development Community Development Block Grant Program. Grant Fund - Accounts for federal and state grants that are legally restricted to expenditures allowable by the grantor agency. Schedule B-1 City of Bangor, Maine Combining Balance Sheet Special Revenue Funds June 30, 1999 (with Comparative Totais for June 30, 1998) Economic Community Urban Incentive Development Development Revolving Grant Totals Block Grants Action Grants Loan Fund Fund 1999 1998 �s�ets: Cash $903 $220 $70,295 $480 $71,898 $36,757 Investments - - - - - 35,485 Accounts receivable - - - 1,629 1,629 6,820 Loans receivable 2,945,676 1,115,131 232,076 - 4,292,883 4,069,647 Allowanceforuncollectible - (130,131) - - (130,131) (130,131) Due from other governments 25,424 - - 154,123 179,547 459,537 Prepaid items 24,021 - - 18,860 42,881 16,108 Totalassets $2,996,024 $985,220 $302,371 $175,092 $4,458,707 $4,494,223 Lial�ilities: Accounts payable $39,643 - - $32,993 $72,636 $66,912 Amounts held for others - - - - - ' Deferred revenue 2,945,676 985,000 232,076 - 4,162,752 3,939,516 , Due to rehabilitation recipients 64,761 - - - 64,761 5,559 Dueto otherfunds 229,000 - - 142,000 371,000 442,000 Total Liabilities 3,279,080 985,000 232,076 174,993 4,671,149 4,453,987 Fund balances: Reserved for: Encumbrances 40,211 - - 6,948 47,159 30,960 Prepaid items 24,021 - - 18,860 42,881 16,108 Unreserved, undesignated (347,288) 220 70,295 (25,709) (302,482) (6,832) Totai fund balances/(deficit) (283,056) 220. 70,295 99 (212,442) 40,236 Total liabilities and fund balances $2,996,024 �985,220 $302,371 $175,092 $4,458,707 $4,494,223 II-42 Schedule B-2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds For the Fiscal Year ended June 30, 1999 Economic Community Urban Incentive Development Development Revolving Grant Block Grants Action Grants Loan Fund Fund Total evenues_ Intergovemmental $901,405 - - $3,468,755 $4,370,160 Charges for services - - - 319,038 319,038 Program income 353,620 - 31,851 - 385,471 Other 2,064 12 2,933 - 5,009 Totalrevenues 1,257,089 12 34,784 3,787,793 5,079,678 Expenditures• Acquisition of real property 233,636 - - - 233,636 Public works facilities site improvements 180,191 - - - 180,191 Business development assistance 33,782 - - - 33,782 Disposition of real property 55,642 - - - 55,642 Administration 236,355 - - - 236,355 Rehabilitation and preservation activities 545,894 - - - 545,894 Planning 75,905 - - - 75,905 Personnel - - - 458,923 458,923 Other 98,456 - - 2,597,510 2,695,966 Bus operations - - - 800,818 800,818 Totalexpenditures 1,459,861 - - 3,857,251 � 5,317,112 Excess (deficiency) of revenues over ' expenditures (202,772) 12 34,784 (69,458) (237,434) Other financin�sou�ces (uses)� Transfers to other funds (19,002) - - - (19,002) Transfers from other funds - - - 3,758 3,758 Total other fmancing sources (uses) (19,002) - - 3,758 (15,244) Excess (deficiency) of revenues over expenditures and other financing uses (221,774) 12 34,784 (65,700) (252,678) Fund balances/(deficit), July i (61,282) 208 35,511 65,799 40,236 Fund balances/(deficit), June 30 ($283,056) $220 $70,295 $99 ($212,442) II-43 t : . , , , . � . ,x,:� �. x, �, k ° Capital Projects Fund The Capital Projects fund is used account for the acquisition and cot�truction of major capital facilities other than those financed by proprietary funds a�nd trust fiinds. �; ,,. ` - Schedule C=1_ City of Bangor, Maine Balance Sheets Capital Projects Fund June 30, 1999 and 1998 1999 1998 Assets_ Cash $328,637 $37,855 Accounts receivable 15,450 - Deferred special assessments receivable 30,130 30,130 Due from other governments 15,959 304,794 Investment of bond proceeds 1,191,051 1,657,950 Total assets $1,581,227 $2,030,729 Liabilities: Accounts payable $342,707 $97,936 Amounts held for others 14,979 16,850 Total liabilities 357,686 114,786 Fund Balances: Reserved for encumbrances 254,778 391,743 Unreserved: Designated for subsequent years 758,358 1,216,845 _ Undesignated: Deferred special assessments 30,130 30,130 Future construction - General Fund 78,174 187,730 Future construction - School department 102,101 89,495 Total fund balances 1,223,541 1,915,943 Total liabilities and fund balances $1,581,227 $2,030,729 II - 44 Schedule C-2 City of Bangor, Maine Combining Statement of Revenues, Expenditures, and Changes in Fund Balance � Capital Projects Fund For the Fiscal Year Ended June 30, 1999 Re_v_enues: Intergovernmental $877,754 Revenue from use of money and property 227,506 Other 33,461 Total revenues 1,138,721 Ex�enclitures: Capital additions 3,562,673 Landfill closure and postclosure care costs 205,446 Total expenditures 3,768,119 (Deficiency) of revenues over expenditures (2,629,398) Other f nancing�ources (ns_e_s�: General obligation debt 1,157,600 Transfers to other funds (29,962) Transfers from other funds 809,358 Total other financing sources 1,936,996 (Deficiency) of revenues and sources over expenditures and other uses (692,402) Fund balance, July 1 1,915,943 Fund balance, June 30 $1,223,541 II - 45 Enterprise Funds Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the government is to have the costs of providing goods or services to the general public financed or recovered primarily through �ser charges. The government has decided that periodic determination of net income is appropriate for accountability purposes. The following are the City's Enterprise Funds: Sewer Utility Fund - This fund accounts for the costs of construction and operation of the Sewage Treatment Plant, the City sewer system, and sewer separation activities, and is self-supported through sewer user fees. Airport Fund - This fund accounts for the operation of Bangor International Airport. The principal sources of revenues are landing fees and the sale of aviation fuel. � Other revenue sources include lease payments for the use of terminal space and non-aviation industrial buildings. Park Woods - This fund accounts for the rental of,60 units of surplus housing received from the federal government pursuant to the McKinney Homeless Assistance Act. The principal source of revenue is rental income. City Nursing Faciliry - This fund accounts for the operation of a City-owned nursing home. This is a 61 bed facility, and principal revenue sources are Medicaid and rental income from excess space. The current facility was the base hospital at the former pow Air Force Base, which closed in 1969. Parking Fund - This fund accounts for the operation of the City-owned parking lots and the Pickering Square Garage. Revenue sources include monthly lease payments for parking spaces, hourly/daily parking fees, and fines and waiver fees for parking violations. Certain of these facilities are operated under a private management contract. Bass Park Fund - This fund accounts for the operation of the Bangor Auditorium, Bangor Civic Center, and Bangor State Fair. Principal sources of revenue are admissions, concession sales, and rentals. The fund is named after the Bass family which bequeathed the property to the City for recreational purposes. Municipal Golf Course - This fund accounts for the operation of a 27 hole municipal golf course. Principal revenue sources are season memberships and daily green fees. Economic Development - This fund accounts for the operation and development of properties acquired by the City. Its purpose is to promote economic growth within the City. The principal source of revenue is rental income. , City of Bangor, Maine Combining Balance Sheet Enterprise Funds June 30, 1999 (with Comparative Totals for June 30, 1998) Sewer Utility Airport Park Fund Fund Woods Assets: Cunent assets: Cash $903,302 $637,591 $35 Investments 2,990,229 4,567,900 - Accounts receivable 1,585,867 1,312,096 60 Less allowance for estimated uncollectible accounts (22,601) (181,476) - Netaccountsreceivable 1,563,266 1,130,620 60 Due from water district 131,219 - - Due from other governments 82,513 181,191 - Inventories, at cost - 90,613 - Prepaid items 1,120 14,018 - Total cunent assets 5,671,649 6,621,933 95 Property, plant and equipment: ' Land 683,895 - - Buildings, plant and equipment 32,090,219 - 2,255,724 Pipelines and mains 32,599,450 - - Aircraft operational assets - 193,813,218 - Parking structures - - - Construction in process 6,423,681 1,020,975 - 71,797,245 194,834,193 2,255,724 Less accumulated depreciation (17,990,903) (78,704,650) (385,253) Net property, plant and equipment 53,806,342 116,129,543 1,870,471 Other assets: Investments - 11,162,302 - Deferred special assessments receivable 112,864 - - Investment of bond proceeds 838,498 506,688 - Deposits - - 15,000 Investment held by bond trustee 30,317 - - Loans receivable - 2,092,692 - Operating rights (net of accumulated amortization of$1,087,917 in 1999 and $1,040,787 in 1998) - 212,083 - Bond issuance costs (net of accumulated amortization of$166,024 in 1999 and $145,271 in 1998) 249,038 - - Property held for resale - - - Total assets $60,708,708 $136,725,241 $1,885,566 Continued on facing page II -46 Schedule D� City Municipal Economic Nursing Parking Bass Park Golf Development Totals Facility Fund Fund Course Fund 1999 1998 $545 $115,084 $8,959 $198,623 $214,161 $2,078,300 $1,556,680 12,526 237,997 - 228,283 - 8,036,935 10,993,049 526,933 8,246 150,948 - - 3,584,150 3,532,790 (73,983) (4,876) (27,772) - - (310,708) (304,325) 452,950 3,370 123,176 - - 3,273,442 3,228,465 - - - - - 131,219 149,474 - - - - - 263,704 526,472 13,363 - 10,094 - - 114,070 113,184 1,400 - 46,647 840 - 64,025 39,338 480,784 356,451 188,876 427,746 214,161 13,961,695 16,606,662 39,575 - 228,572 27,767 - 979,809 979,809 2,902,845 - 6,011,248 1,194,359 2,366,886 46,821,281 45,041,210 - - - - - 32,599,450 32,599,450 - - - - - 193,813,218 187,801,305 - 6,459,608 - - - 6,459,608 6,459,608 131,319 387,620 3,023 479,121 6,286 8,452,025 8,199,981 3,073,739 6,847,228 6,242,843 1,701,247 2,373,172 289,125,391 281,081,363 (2,400,525) (3,206,453) (4,004,834) (489,315) (70,189) (107,252,122) (99,610,475) 673,214 3,640,775 2,238,009 1,211,932 2,302,983 181,873,269 181,470,888 - - - - - 11,162,302 9,404,843 - - - - - 112,864 115,031 331,850 - 21,622 - 1,348,199 3,046,857 1,228,345 - - - - - 15,000 15,000 - - - - - 30,317 400,657 - - - - 149,473 2,242,165 1,758,907 - - - - - 212,083 259,213 - - - - - 249,038 269,791 - - - - 1,395,327 1,395,327 1,300,000 $1 485 848 $3,997 226 $2,448,507 $1,639,678 $5,410,143 $214,300,917 $212,829,337 II -47 � City of Bangor, Maine Combining Balance Sheet Enterprise Funds . June 30, 1999 (with Comparative Totals for June 30, 1998) . Sewer Utility Airport Park Fund Fund Woods Liabilities and Fund Eaui� � Current liabilities: Accounts payable $145,527 $1,128,832 $10,668 Workers' compensation 30,990 98,500 5,679 Accrued compensated absences 37,828 163,159 - Accrued payroll and withholdings 40,960 172,724 3,366 Accrued interest 368,368 78,260 - Due to other governments - - - Deferred revenue - 253,163 - Due to other funds - - 36,988 General obligation debt payable - current 2,237,124 - - Limited obligation revenue debt payable - cunent - 230,000 - Other current liabilities - 38,857 - Total cunent liabilities 2,860,797 2,163,495 56,701 Long-term liabilities: Workers' compensation 170,474 58,937 - Developer payable deposits 58,883 - - General obligation debt payable 29,874,911 - - Limited obligation revenue debt payable - 4,710,000 - Deferred amount on refunding (314,016) - - Arbitrage payable 108,462 - - Other long-term liabilities 124,982 - 193,061 Total long-term liabilities 30,023,696 4,768,937 193,061 Totalliabilities 32,884,493 6,932,432 249,762 Fund equity (deficit): Contributed capital: City 3,986,552 - - Federal, state and other 6,067,081 95,848,340 1,694,618 Customers 2,838,491 - - Total contributed capital 12,892,124 95,848,340 1,694,618 Retained earnings: Reserved 68,970 1,877,980 - Reserved for debt service - 539,308 - Unreserved 14,863,121 31,527,181 (58,814) Total retained earnings 14,932,091 33,944,469 (58,814) Total fund equiry (deficit) 27,824,215 129,792,809 1,635,804 Total liabilities and fund equiry $60,708,708 $136,725,241 $1,885,566 * Restated Continued on facing page II -48 Schedule D-1 (con'tl City � Municipal Economic Nursing Parking Bass Park Golf Development Totals Facility Fund Fund Course Fund 1999 1998 * $38,763 $34,553 $37,745 $46,188 $64,098 $1,506,374 $1,747,108 95,000 3,026 10,000 - - 243,195 232,913 39,904 906 19,497 174 - 261,468 278,569 89,623 4,914 21,446 15,033 - 348,066 341,750 4,686 77,930 16,544 - 30,513 576,301 568,284 - - - - - - 1,300,000 21,229 77,899 84,620 - - 436,911 217,214 1,430,217 - 1,454,355 - - 2,921,560 2,202,560 47,961 353,566 71,120 - 311,662 3,021,433 2,858,932 - - - - - 230,000 220,000 7,253 - 1,687 - - 47,797 65,008 1,774,636 552,794 1,717,014 61,395 406,273 9,593,105 10,032,338 5,000 6,974 - - - 241,385 249,684 - - - - - 58,883 58,883 713,816 3,512,000 1,248,400 - 3,265,861 38,614,988 36,607,809 - - - - - 4,710,000 4,940,000 - (271,850) - - - (585,866) (670,541) - 12,106 - - - 120,568 114,240 - - - - - 318,043 318,043 718,816 3,259,230 1,248,400 - 3,265,861 43,478,001 41,618,118 2,493,452 3,812,024 2,965,414 61,395 3,672,134 53,071,106 51,650,456 47,764 - 221,358 - - 4,255,674 4,434,526 39,298 79,750 534,797 8,048 1,414,065 105,685,997 108,110,551 - - - - - 2,838,491 2,906,999 87,062 79,750 756,155 8,048 1,414,065 112,780,162 115,452,076 - - - 121,739 - 2,068,689 2,231,129 - - - - - 539,308 539,308 (1,094,666) 105,452 (1,273,062) 1,448,496 323,944 45,841,652 42,956,368 (1,094,666) 105,452 (1,273,062) 1,570,235 323,944 48,449,649 45,726,805 (1,007,604) 185,202 (516,907) 1,578,283 1,738,009 161,229,811 161,178,881 _ $1,485,848 $3,997,226 $2,448,507 $1,639 678 $5 410,143 $214,300,917 $212 829 337 II -49 City of Bangor, Maine Combining Statement of Revenues, Expenses and Changes in Retained Earnings Enterprise Funds For the Fiscal Yeaz ended June 30, 1999 Sewer Utility Airport Park Fund Fund Woods O�erating re_v_enues: Charges for services $6,315,793 $9,148,692 $259,984 O�eratin�ex.penses: Operating expenses other than depreciation and amortization 2,540,503 7,059,474 251,415 Depreciation and amortization On assets acquired with own funds 1,182,253 1,465,917 8,501 On assets acquired with grants and contribution 234,211 3,930,705 85,991 Total operating expenses 3,956,967 12,456,096 345,907 Operating income (loss) 2,358,826 (3,307,404) (85,923) Non_o�eratin�revenue�ex�enses�:_ Interest income 270,573 654,472 485 Interest expense (1,446,215) (315,898) - Miscellaneous income - 195,204 5,317 Total non-operating revenues (expenses) (1,175,642) 533,778 5,802 Net income (loss)before operating transfers 1,183,184 (2,773,626) (80,121) Transfers from other funds - - - Operating subsidy - - 14,852 Net income (loss) 1,183,184 (2,773,626) (65,269) Add depreciation and amortization on fixed assets acquired by grants and contributions 234,211 3,930,705 85,991 Increase (decrease) in retained earnings 1,417,395 1,157,079 20,722 Retained earnings (deficit), July 1 * 13,514,696 32,787,390 (79,536) Retained eamings (deficit), June 30 $14,932,091 $33,944,469 $5( 8,g14) * Restated Continued on facing page II -50 Schedule D-2 City Municipal Economic Nursing Parking Bass Pazk Golf Development Facility Fund Fund Course Fund Total $2,217,683 $699,999 $1,141,995 $721,923 $230,554 $20,736,623 2,736,468 438,171 1,403,623 341,260 63,325 14,834,239 86,675 288,852 120,929 74,570 11,707 3,239,404 8,327 7,250 163,092 555 19,893 4,450,024 2,831,470 734,273 1,687,644 416,385 94,925 22,523,667 (613,787) (34,274) (545,649) 305,538 135,629 (1,787,044) 15,446 10,857 18,616 24,710 34,684 1,029,843 (28,135) (235,829) (69,040) - (75,019) (2,170,136) 150 - - - 55,406 256,077 (12,539) (224,972) (50,424) 24,710 15,071 (884,216) (626,326) (259,246) (596,073) 330,248 150,700 (2,671,260) - - 20,000 - 19,002 39,002 184,371 356,797 349,058 - - 905,078 (441,955) 97,551 (227,015) 330,248 169,702 (1,727,180) 8,327 7,250 163,092 555 19,893 4,450,024 (433,628) 104,801 (63,923) 330,803 189,595 2,722,844 (661,038) 651 (1,209,139) 1,239,432 134,349 45,726,805 ($1,094,666) $105,452 ($1,273,062) $1,570,235 $323,944 $48 449 649 I I II-51 I City of Bangor, Maine Combining Statement of Cash Flows Enterprise Funds For the Fiscal Year Ended June 30, 1999 Sewer Utiliry Airport Park Fund Fund Woods Cash flows from o�eratin�activities: Cash received from customers $6,254,723 $9,487,225 $259,924 Cash payments to suppliers for goods and services (1,591,821) (3,635,902) (212,300) Cash payments to employees for services (941,107) (4,333,364) (52,562) Net cash provided by (used in) operating activities 3,721,795 1,517,959 (4,938) Cash flows from n n�-E�tal financ�ach'vitie�: Interfund loans (repayments) � - - (14,900) Operating subsidies received - - 14,852 Net cash provided by (used in) non-capital financing activities - - (48) Cash flows from canital and related finanCing activities• Proceeds from general obligation debt 1,165,300 - - Acquisition and construction of capital assets (1,956,872) (3,840,149) (1,587) Principal paid on general and limited obligation revenue debt (2,184,768) (222,094) - Interest paid on general and limited obligation revenue debt (1,398,181) (318,813) - Proceeds from sale of equipment - 229,557 - Insurance/claims proceeds - - 5,317 Grant monies received for capital assets 662,354 1,198,493 - Contributions received for capital assets 51,478 - - Investment of bond proceeds (164,489) 32,642 - Net cash provided by (used in) capital and related fmancing activities (3,825,178) (2,920,364) 3,730 Cash flows from investin�activities: Net sales (purchases) of investments 125,676 1,355,043 - Interest on investments 2'76,309 654,472 485 Loans issued - (395,500) - Loan repayments - 61,715 - Net cash provided by (used in) investing activities 401,985 1,675,730 485 Net increase (decrease) in cash 298,602 273,325 (771) Cash, July 1 604,700 364,266 806 Cash, June 30 $903,302 $637,591 $35 Schedule of noncash investing, capital and fmancing activities: During the year, the Economic Development Fund received a noncash contribution based on the CDBG Fund's payment of debt service on property held by the Economic Development Fund. Continued on facing page II -52 Schedule D-3 City Municipal Economic Nursing Parking Bass Park Golf Development Facility Fund Fund Course Fund Total $2,048,200 $694,860 $1,139,771 $721,923 $228,618 $20,835,244 (466,100) (308,393) (818,830) (103,231) (68,356) (7,204,933) (2,264,142) (128,583) (609,565) (197,787) - (8,527,110) (682,042) 257,884 (288,624) 420,905 160,262 5,103,201 579,000 (3,777) 166,000 - (11,100) 715,223 184,371 356,797 349,058 - - 905,078 763,371 353,020 515,058 - (11,100) 1,620,301 425,000 346,100 - - 3,092,200 5,028,600 (173,977) (366,066) (443,630) (485,626) (1,621,478) (8,889,385) (26,230) (334,106) (70,529) - (7,858) (2,845,585) (26,930) (202,439) (69,806) - (83,383) (2,099,552) - - - - 112,358 341,915 - - - - - 5,317 - - - - - 1,860,847 150 - 20,000 - 19,002 90,630 (294,028) - - - (1,333,002) (1,758,877) (96,015) (556,511) (563,965) (485,626) 177,839 (8,266,090) (1,268) (207,847) 325,903 (88,147) - 1,509,360 15,446 11,448 18,616 24,710 34,684 1,036,170 - - - - (150,000) (545,500) - - - - 2,463 64,178 14,178 (196,399) 344,519 (63,437) (i12,853) 2,064,208 (508) (142,006) 6,988 (128,158) 214,148 521,620 1,053 257,090 1,971 326,781 13 1,556,680 $545 $115 084 $8 959 $198 623 $214 161 $2 078 300 II- 53 Gity of Bangor, Maine Combining Statement of Cash Flows Enterprise Funds For the Fiscal Yeaz Ended June 30, 1999 Sewer Utiliry Airport Park Fund Fund Woods Reconciliation of o�eratin�income to net cash provided by�used in�o�era�activ_ities: Operating income (loss) $2,358,826 ($3,307,404) ($85,923) Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Depreciation and amortization 1,416,464 5,396,622 94,492 Provision for uncollectible accounts - 6,176 - Changes in assets and liabilities: (Increase) decrease in accounts receivable (79,325) 91,721 (60) (Increase)decrease in due from water district 18,255 - - (Increase)decrease in inventories 15,739 (15,684) - (Increase) decrease in prepaid items 3,668 (11,794) - Increase (decrease) in accounts payable (10,412) (869,171) (16,408) Increase (decrease) in deferred revenue - 246,812 - Increase (decrease) in other current liabilities (1,420) (19,319) 2,961 Total adjustments 1,362,969 4,825,363 80,985 Net cash provided by (used in) operating activities $3,721,795 $1,517,959 ($4,938) Continued on facing page II -54 Schedule D-3�con't� City Municipal Economic Nursing Parking Bass Park Golf Development Facility Fund Fund Course Fund Total ($613,787) ($34,274) ($545,649) $305,538 $135,629 ($1,787,044) 95,002 296,102 284,021 75,125 31,600 7,689,428 - - (305) 30 - 5,901 (137,786) 778 (8,719) - - (133,391) _ - - - - 18,255 (1,553) - 612 - - (886) 700 - (17,681) 420 - (24,687) 11,066 1,273 (8,937) 41,497 (6,967) (858,059) (27,692) (5,917) 6,494 - - 219,697 (7,992) (78) 1,540 (1,705) - (26>013) (68,255) 292,158 257,025 115,367 24,633 6,890,245 $( 682,04� $257,884 ($288 624) $420,905 $160,262 $5,103,201 II -55 Sched�le� Ciry of Bangor, Maine Schedule of Revenues, Expenditures and Encumbrances Budget and Actual - Budget Basis Enterprise Funds - Sewer Utility Fund For the Fiscal Year Ended June 30, 1999 Budget Actual Variance Revenues: Charges for services $5,907,297 $6,293,949 $386,652 Operating subsidy - - - Interest and other revenue 127,000 237,400 110,400 Totalrevenues 6,034,297 6,531,349 497,052 Expenditures and Encumbrances Salaries 754,593 713,111 41,482 Fringe benefits 251,421 226,576 24,845 Supplies 723,150 641,757 81,393 Contractual services 476,586 430,135 46,451 Interfund charges 463,288 335,869 127,419 Miscellaneous 19,100 10,237 8,863 Debt service 3,656,795 3,707,428 (50,633) Depreciation 1,142,185 1,182,253 (40,068) Outlay 65,007 141,662 (76,655) Credits - - - Total expenditures and encumbrances 7,552,125 7,389,028 163,097 Excess (deficiency) of revenues over expenditures and encumbrances ($1,517,828) ($857,679) $660,149 II - 56 Schedule_D-5 City of Bangor, Maine Schedule of Revenues, Expenditures and Encumbrances Budget and Actual - Budget Basis Enterprise Funds - Airport Fund For the Fiscal Year Ended June 30, 1999 Bud e�t Actual Variance Revenues: Charges for services $8,771,300 $9,148,692 $377,392 Operating subsidy - - - Interest and other revenue 750,000 1,289,005 539,005 Total revenues 9,521,300 10,437,697 916,397 Expenditures and Encumbrances Salaries 3,651,525 3,435,913 215,612 Fringe benefits 945,827 891,817 54,010 Supplies 1,238,225 1,135,100 103,125 Contractual services 1,339,930 1,137,394 202,536 Interfund charges 508,816 455,331 53,485 Miscellaneous 107,129 56,296 50,833 Debt service 540,725 537,992 2,733 Depreciation 1,847,130 1,465,917 381,213 Outlay 985,073 1,257,268 (272,195) Credits - - - Total expenditures and encumbrances 11,164,380 10,373,028 791,352 Excess (deficiency) of revenues over expenditures and encumbrances ($1,643,080) $64,669 $1,707,749 II - 57 Schedule D-6 City of Bangor, Maine Schedule of Revenues, Expenditures and Encumbrances Budget and Actual - Budget Basis • Enterprise Funds - Park Woods For the Fiscal Year Ended June 30, 1999 Budget Actual Variance Revenues: Charges for services $256,506 $259,984 $3,478 Operating subsidy 14,852 14,852 - Interest and other revenue - 5,802 5,802 Total revenues 271,358 280,638 9,280 Expenditures and Encumbrances Salaries 44,053 47,237 (3,184) Fringe benefits 9,397 8,286 1,111 Supplies 83,250 86,297 (3,047) Contractual services 122,955 105,151 17,804 Interfund charges 4,550 4,151 399 Miscellaneous - - - Debt service - - - Depreciation 8,222 8,501 (279) Outlay 7,153 1,880 5,273 Credits - - - Total expenditures and encumbrances 279,580 261,503 18,077 Excess (deficiency) of revenues over expenditures and encumbrances ($8,222) $19,135 $27,357 II - 58 Sche�ule D_7 City of Bangor, Maine Schedule of Revenues, Expenditures and Encumbrances Budget and Actual - Budget Basis Enterprise Funds - City Nursing Facility For the Fiscal Year Ended June 30, 1999 Budget Actual Variance Revenues: Charges for services $2,761,128 $2,217,808 ($543,320) Operating subsidy 184,371 184,371 - Interest and other revenue 1,200 6,439 5,239 Total revenues 2,946,699 2,408,618 (538,081) Expenditures and Encumbrances Salaries 1,835,041 1,733,402 101,639 Fringe benefits 521,846 526,753 (4,907) Supplies 291,145 306,673 (15,528) Contractual services 177,172 158,153 19,019 Interfund charges 8,290 5,406 2,884 Miscellaneous 6,440 1,678 4,762 Debt service 56,190 53,135 3,055 Depreciation 73,120 86,675 (13,555) Outlay 50,575 58,665 (8,090) Credits - - - Total expenditures and encumbrances 3,019,819 2,930,540 89,279 Excess (deficiency) of revenues over expenditures and encumbrances ($73,120� $521 922_ $( 448,8� II - 59 Schedule D-8 City of Bangor, Maine Schedule of Revenues, Expenditures and Encumbrances Budget and Actual - Budget Basis Enterprise Funds - Parking Fund • For the Fiscal Year Ended June 30, 1999 Budget Actual Variance Revenues: Charges for services $618,940 $699,999 $81,059 Operating subsidy 356,797 356,797 - Interest and other revenue 2,500 5,978 3,478 Total revenues 978,237 1,062,774 84,537 Expenditures and Encumbrances Salaries 122,782 101,540 21,242 Fringe benefits 36,904 26,965 9,939 Supplies 3,300 7,635 (4,335) Contractual services 184,000 202,954 (18,954) Interfund charges 78,500 82,851 (4,351) Miscellaneous - 268 (268) Debt service 544,237 569,935 (25,698) Depreciation 288,847 288,852 (5) Outlay 8,514 15,958 (7,444) Credits - - - Total expenditures and encumbrances 1,267,084 1,296,958 (29,874) Excess (deficiency) of revenues over expenditures and encumbrances _$( 288,847� _$�2�184� $54,663 II - 60 Schedule D-9 City of Bangor, Maine Schedule of Revenues, Expenditures and Encumbrances Budget and Actual - Budget Basis Enterprise Funds - Bass Park Fund For the Fiscal Year Ended June 30, 1999 Budget Actual Variance Revenues: Charges for services $1,179,250 $1,140,588 ($38,662) Operating subsidy 349,058 349,058 - Interest and other revenue - 8,342 8,342 Total revenues 1,528,308 1,497,988 (30,320) Expenditures and Encumbrances Salaries 508,352 505,244 3,108 Fringe benefits 120,769 105,378 15,391 Supplies 205,525 180,401 25,124 Contractual services 398,550 456,030 (57,480) Interfund charges 94,075 89,387 4,688 Miscellaneous 65,000 65,289 (289) Debt service 140,287 149,038 (8,751) Depreciation 109,692 120,929 (11,237) Outlay 6,750 6,391 359 Credits (11,000) - (11,000) Total expenditures and encumbrances 1,638,000 1,678,087 (40,087) Excess (deficiency) of revenues over expenditures and encumbrances _$( 109,6� ($180,099) ($70,4� II - 61 Schedule D-10 City of Bangor, Maine Schedule of Revenues, Expenditures and Encumbrances Budget and Actual - Budget Basis Enterprise Funds - Municipal Golf Course For the Fiscal Year Ended June 30, 1999 Budget Actual Variance Revenues: Charges for services $620,547 $721,923 $101,376 Operating subsidy - - - Interest and other revenue 10,000 24,710 14,710 Totalrevenues 630,547 746,633 116,086 Expenditures and Encumbrances Salaries 158,322 174,600 (16,278) Fringe benefits 24,924 21,483 3,441 Supplies 46,200 25,400 20,800 Contractual services 63,216 77,263 (14,047) Interfund charges 290,385 23,022 267,363 Miscellaneous - - - Debt service - - - Depreciation 70,132 74,570 (4,438) Outlay 47,500 37,928 9,572 Credits - - - Total expenditures and encumbrances 700,679 434,266 266,413 Excess (deficiency) of revenues over expenditures and encumbrances _�$70 132� $312,367 $382,499 II - 62 Schedule D-11 City of Bangor, Maine Schedule of Revenues, Expenditures and Encumbrances Budget and Actual - Budget Basis � Enterprise Funds - Economic Development Fund , For the Fiscal Year Ended June 30, 1999 Budget Actual Variance Revenues: Chargesforservices $214,635 $228,618 $13,983 Operating subsidy - - - Interest and other revenue - 132 132 Total revenues 214,635 228,750 14,115 Expenditures and Encumbrances Salaries - 17 (17) Fringe benefits - 1 (1) Supplies 18,100 11,726 6,374 Contractual services 18,910 41,237 (22,327) Interfund charges - 313 (313) Miscellaneous 31,269 2,304 28,965 Debt service 49,356 63,875 (14,519) Depreciation - 11,707 (11,707) Outlay 97,000 82,767 14,233 Credits - - - . Total expenditures and encumbrances 214,635 213,947 688 Excess of revenues over expenditures and encumbrances - $14,803 $14,803 II - 63 ;' ' � ' ' .a'. ^:. Trust and Agency Funds The following are the City's Trust and Agency Funds: Accounts for amounts received from various parties to fund the Perpetual Care of Other Funds - specific cemetery plots and to benefit parks, educational and other benevolent causes. Revolving Accounts for the Sophia Kirstein Student Loan Fund. The fund was established to Loan Funds- provide educational loans to residents of the City of Bangor. Expendable Accounts for amounts raised or donated to benefit the Dental Clinic, local parks and Trust Funds- to purchase thermal imaging cameras. Agency Funds - Accounts for assets held by the government in a purely custodial capacity. �ched�ile E=1 City of Bangor, Maine Combining Balance Sheet Trust and Agency Funds June 30 ,1999 (with Compazative Totals for June 30, 1998) Nonexpendable Trust Funds Other Revolving Expendable Agency Totals Funds Loan Funds Totai Trust Funds Funds 1999 1998 Assets:_ Cash - - - - $138,877 $138,877 $240,017 Investments 914,059 87,028 1,001,087 176,896 392,160 1,570,143 1,370,243 Receivables: Accounts - - - - 839 839 420 �� - 43,635 43,635 - - 43,635 52,776 Totalassets $914,059 $130,663 $1,044,722 $176,896 $531,876 $1,753,494 $1,663,456 Liabilities:. Accounts payable - - - - $4,073 $4,073 $482 Amounts held for others - - - - 527,803 527,803 533,687 Totalliabiliries - - - - 531,876 531,876 534,169 F�nd balances: Reserved for: �� - 130,663 130,663 - - 130,663 127,286 Endowments 535,321 - 535,321 - - 535,321 536,221 Unreserved, undesignated 378,738 - 378,738 176,896 - 555,634 465,780 Totalfund balances 914,059 130,663 1,044,722 176,896 - 1,221,618 1,129,287 Total liabilities and fund balances $914,059 $130,663 $1,044,722 $176,896 $531,876 �7�494 $1,663,456 II- 64 Schedu_le E-2 City of Bangor, Maine Statement of Revenues, Expenditures, and Changes in Fund Balance • Expendable Trust Funds For the Fiscal Year Ended June 30, 1999 Re_v_enues_ Revenue from use of money and property $17,085 Contributions 62,405 Total revenues 79,490 Ex�enditures_ Payments to beneficiaries 596 Total expenditures 596 Excess of revenues over expenditures 78,894 Other f nancin�use�: Transfers to other funds 26,862 Excess of revenues over expenditures and other financing uses 52,032 Fund balance, July 1 124,864 Fund balance, June 30 $176,896 II - 65 Schedule E-3 City of Bangor, Maine Combining Statement of Revenues, Expenses, and Changes in Fund Balances Nonexpendable Trust Funds For the Fiscal Year Ended June 30, 1999 Other Revolving Funds Loan Fund Total O�eratin�revenues: Interest $105,321 $4,914 $110,235 Lot sales 3,600 - 3,600 Other 257 - 257 Total operating revenues 109,178 4,914 114,092 O�eratin�ex�enses: Payments to beneficiaries 5,640 - 5,640 Miscellaneous - 1,537 1,537 Total operating expenses 5,640 1,537 7,177 Net income before operating transfers 103,538 3,377 106,915 Transfers to other funds (66,650) - (66,650) Transfers from other funds 34 - � 34 Net income 36,922 3,377 40,299 Fund balances, July 1 877,137 127,286 1,004,423 Fund balances, June 30 $914,059 $130,663 $1,044,722 II - 66 Schedule E-4 City of Bangor, Maine Combining Statement of Cash Flows Nonexpendable Trust Funds For the Fiscal Year Ended June 30, 1999 Other Revolving Funds Loan Fund Total Cash flows from o�eratin�activ_ities: Cash payments to suppliers for goods and services - ($1,537) ($1,537) Other operating cash receipts 3,891 10,114 14,005 Other operating cash payments (72,290) - (72,290) Net cash provided by (used in) operating activiries (68,399) 8,577 (59,822) Cash flows from inv_estin�activ_ities: Net sales (purchases) of investments (36,922) (12,518) (49,440) Interest on investments 105,321 3,941 109,262 Net cash provided by (used in) investing activities 68,399 (8,577) 59,822 Net increase (decrease) in cash - - - Cash, July 1 - - - Cash, June 30 - ' ' Reconciliation of o.�eratin�income to net cash.�rovided by�used in�o�eratin�activ_ities; Operating income $103,538 $3,377 $106,915 Adjustments to reconcile operating income to net cash provided by (used in) operating activities Presentation differences - Interest (105,321) - (105,321) Transfers, net (66,616) - (66,616) Student loan funds - 5,200 5,200 Net cash provided by (used in) operating activities ($68,399) $8,577 ($59,8221 II - 67 � � � . a; q.,; ,s �� ;: �en�eral Fixed Assets Account Group The general fixed �ssets account group is nsed to account for the City's fixed assets which are not accounted for in an enterprise or trust fund. This self-balancing account group is used to establish accounting control of the City's general fixed assets. ; Schedule�5 City of Bangor, Maine Statement of Changes in Assets and Liabilities Agency Funds For the Fiscal Year Ended June 30, 1999 Balance Balance June 30, 1998 Additions Deletions June 30, 1999 Assets: Cash $240,017 $161,122 $262,262 $138,877 Investments 293,732 779,976 681,548 392,160 Accounts receivable 420 419 - 839 $534 169 $941 517 $943 810 $531 876 Liabilities: Accounts payable $482 $39,347 $35,756 $4,073 Amounts held by agency fund for others 533,687 902,170 908,054 527,803 $534 169 $941 517 $943 810 $531 876 II - 68 Schedul� F-1 City of Bangor, Maine Schedule of General Fixed Assets by Source June 30, 1999 General Fixed Assets Land $5,198,491 School land 1,350,988 Buildings 5,464,613 School buildings 26,262,569 Vehicles 7,383,931 Machinery and equipment 4,494,515 School other 5,255,509 Construction in progress 8,547,039 Total general fixed assets $63,957,655 Investment in General Fixed Assets General fund $63,957,655 II - 69 Schedul_e F-2 Ciry of Bangor, Maine Schedule of General Fixed Assets by Function June 30, 1999 Machinery and Land Buildings Vehicles Equipment Total General government $3,682,151 $154,200 $508,100 $989,309 $5,333,760 Public safety 131,355 2,180,173 1,663,500 776,942 4,751,970 Health, welfare and reereation 1,037,595 1,818,390 - 702,338 3,558,323 Public building and services 347,390 1,311,850 5,212,331 2,025,926 8,897,497 Education 1,350,988 26,262,569 - 5,255,509 32,869,066 6,549,479 31,727,182 7,383,931 9,750,024 55,410,616 Construction in process - 7,118,001 30,005 1,399,033 8,547,039 Total general fixed assets $6,549,479 $38,845,183 $7,413,936 $11,149,057 $63,957,655 II - 70 Schedule F-3 Ciry of Bangor, Maine Schedule of Changes in General Fixed Assets by Function For the Fiscal Year Ended June 30, 1999 General General Fixed Assets Fixed Assets June 30, 1998 Additions Deletions June 30, 1999 General government $4,507,589 $826,171 - $5,333,760 Public safety 4,326,258 425,712 - 4,751,970 Health, welfare and recreation 3,553,191 5,132 - 3,558,323 Public building and services 8,829,873 187,697 120,073 8,897,497 Education 31,806,783 1,062,283 - 32,869,066 53,023,694 2,506,995 120,073 55,410,616 Construction in process 7,646,374 2,082,797 1,182,132 8,547,039 Total general fixed assets $60,670,068 $4,589,792 $1,302,205 $63,957,655 II - 71 E+ , � ..Sr•; . .. �� . filii ,:`::; : 3•... :. . . :.:... '. p.. ... �.. , ... . .. . Other Information � . — � .. �.. �i ax'$=. Schedul�G1 City of Bangor, Maine Assessed Valuation, Commitment and Collections Year Ended June 30, 1999 Valuation• Land and buildings $1,219,950,500 Personal property 188,488,200 Total valuation $1,408,438,700 Commitment: Real estate and personal property $1,408,438,700 Tax rate 0.02380 Total commitment 33,520,841 Add: Supplemental taxes committed 31,364 33,552,205 Less: Collections - 1999 32,025,267 Abatements 145,123 1999 taxes receivable at June 30, 1999 $1,381,815 � r i � � � � � II _ �2 Schedule G2 City of Bangor, Maine Undesignated Fund Balance Sufficiency Calculation Year Ended June 30, 1999 It is the policy of the City to maintain an undesignated fund balance approximating 7.5% of operating expenditures. The following table sets forth the calculation as to the sufficiency of the June 30, 1999 undesignated fund balance. General Fund expenditures/uses (Schedule A-2) General government $3,371,246 Public safety 10,326,120 Health, welfare and recreation 2,651,052 Public buildings and services 7,321,657 Other agencies 2,391,962 Education 31,926,707 Other appropriations 1,471,951 Other uses, gross 1,640,914 Gross expenditures and uses $61,101,609 General Fund debt service 2,988,385 Net expenditures and uses $58,113,224 Indicated undesignated fund balance @ 7.50% $4,358,492 Actual undesignated fund balance (Schedule A-2) $4,242,242 Actual undesignated fund balance as a percent of net expenditures and uses 7.30% Over (under) funded status $( 116,2501 1 ,1 IJ L � L i 1_ II - 73 r`- ) . .�: . ;, � : , . � , , . . , �>. ;�,.: ; ��;"' � � �� Requi�ed Supplementary Inform��tion �3 ; �. ' �'::&d, . .. .. � . . � a�:"'''�� City of Bangor, Maine Required Supplementary Information(LJnaudited) June 30, 1999 Year 2000 Compliance The Year 2000 ("Y2K") problem is universal and involves the ability of computer hardware, software and other electronic equipment to distinguish between dates of the twentieth and twenty first centuries. The potential threat posed to the City is that its operations could be impaired andlor disrupted if accurate financial and other date-related information is not available in machine-readable form, or that systems may stop processing data altogether. Over the previous year and more, and in accordance with GASB Technical Bulletin No. 98-1, "Disclosures about Year 2000 Issues" the City's Information Services staff has identified and inventoried all hardware, software, and other Y2K/computer-related activity in each of the City's departments and divisions. Critical hardware, software and peripherals that were found to be not Y2K compliant were replaced and/or upgraded so as to meet the challenges posed by the millennium change. Additionally, all mission-critical hardware,programs and applications provided by outside vendors (ie. the various financial, assessing, billing, public safety and other programs integral to the City's proper functioning) were upgraded where necessary. Accordingly,management is of the opinion that virtually all the City's mission-critical and mission- important computer systems are presently Y2K compliant. , The City has also received assurances, from virtually all parties with which it transacts date- dependent business,that their systems and capabilities are Y2K compliant as well. While there is no apparent reason to doubt these representations,management expresses no opinion as to the Y2K readiness of these parties. II - 74 �"�t�- �` � .'jef.':.:` i''�'�y�Y.. r+? �- ..p�r :��:r::. 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' .:�...._.: .,-.,':�- 'aK-� '',..., � .--•� �TDE�_TQ_��ATISTICAL SECTION P�g� �eral Fund Sot�es�s�se� Table 1 General Governmental Revenues- Budgetary Basis - General Fund Only, Last Ten Fiscal Years III - 1 Table 2 General Governmental Expenditures - Budgetary Basis - General Fund Only, Last Ten Fiscal Years III - 3 Table 3 General Governmental Expenditures/Other Uses and Revenues/Other Sources - Budgetary Basis - General Fund Only, Last Ten Fiscal Years III - 5 P�pe�ty_Tax_Aat� Table 4 Assessed and Estimated Market Value, Last Ten Fiscal Years III - 7 Table 5 Property Tax Levies, Collections and Delinquencies, Last Ten Fiscal Years III - 9 Table 6 Property Tax Rate Components, Last Ten Fiscal Years III - 11 Table 7 Principal Taxpayers, June 30, 1999 III - 12 �ek��tistic� Table 8 Computation of Legal Debt Margin, June 30, 1999 III - 13 Table 9 Ratio of Net Bonded General Obligation Debt to Assessed Value and Net Banded General Obligation Debt Per Capita, Last Ten Fiscal Years III - 14 Table 10 Ratio of Annual Debt Service Expenditures for General Fund, General Obligation Bonded Debt to Total General fund Expenditures, Last Ten Fiscal Years III - 15 Table 11 Computation of Direct and Overlapping Debt, June 30, 1999 III - 16 Table 12 Direct and Overlapping Debt, Last Ten Fiscal Years III - 17 Table 13 Revenue Bond Coverage, Last Ten Fiscal Years III - 18 Table 14 Debt Service Requirements to Maturity - All Bonded Debt, June 30, 1999 III - 19 Table 15 Self Supporting and Tax Supported General Obligatiorn Debt, June 30, 199 III - 20 Dgfi�n c��e��_�ension Debt Table 16 Defined Benefit Pension Plan - City and Employee Contributions, Last Ten Fiscal Years III - 21 Table 17 Defined Benefit Pension Plan, Unfunded Liability Amortization III - 22 Demog�p�i�,_F�no�ic�nd M�cellan�o�s�� Table 18 Public School Enrollment, Last Ten School Years III - 23 Table 19 Educational Attainment - Persons Age 18 and Over, Calendar 1998 III - 24 Table 20 Employment Composition, Last Ten Calendar Years III - 25 Table 21 Employment Data, Last Ten Calendar Years III - 27 Table 22 Major Employers - Bangor and Bangor MSA, Calendar 1998 III - 28 Table 23 Residential and Commercial Building Permits and Bank Deposits, Last Ten Calendar Years III - 29 Table 24 Ten Largest Current Construction Projects, June 30, 1999 III - 30 Table 25 Various Demographic Data, 1990 Census III - 31 Table 26 Taxable Retail Sales, Last Ten Calendar Years III - 33 Table 27 Miscellaneous Data III - 34 City of Bangor, Maine General Governmental Revenues,Budgetary Basis* General Fund Only Last Ten Fiscal Years Ta�c Revenues Fiscal Real Personal Total Tax Intergov- Year Pro e Pron� Excise Revenue ernmental 1990 $18,823,850 $1,579,998 $2,538,950 $22,942,798 $11,685,235 1991 20,627,960 1,836,642 2,359,558 24,824,160 12,269,912 1992 24,254,687 2,166,822 2,307,113 28,728,622 11,366,929 1993 25,141,883 2,327,456 2,548,060 30,017,399 14,094,486 1994 26,392,128 2,483,933 2,922,952 31,799,013 17,291,808 1995 27,011,014 3,138,803 2,763,619 32,913,436 14,513,524 1996 27,340,204 3,545,267 2,754,819 33,640,290 13,803,107 1997 27,036,650 3,748,446 2,926,858 33,711,954 14,322,698 1998 27,750,306 4,224,568 3,095,072 35,069,946 16,233,583 1999 27,484,400 4,487,895 3,266,421 35,238,716 17,733,946 * Amounts appear in Schedule A-2. ** "Reimbursements"were primarily grants for human services,which were reclassified as intergovernment revenue beginning in fiscal 1993. Continued on Facing Page III - 1 Table 1 Non-Tax Revenues Licenses/ Charges for Fines and Use of Money Reimburse- Total Permits Services Forfeitures And Pro�ertv ments** Revenues $211,100 $4,323,202 $9,453 $1,932,699 $816,097 $41,920,584 199,007 5,154,889 15,355 1,162,157 1,423,846 45,049,326 232,584 5,937,666 12,486 505,967 2,804,902 49,589,156 270,248 6,586,779 11,788 381,952 - 51,362,652 276,167 5,203,023 11,699 530,633 - 55,112,343 268,352 6,936,668 54,132 911,491 - 55,597,603 324,639 6,940,083 26,569 1,066,083 - 55,800,771 372,003 7,138,210 42,350 924,742 - 56,511,957 433,449 7,529,144 28,193 546,229 - 59,840,544 499,483 7,879,418 24,813 600,085 - 61,976,461 III -2 City�of Bangor,Maine General Governmental Expenditures,Budgetary Basis* General Fund Only Last Ten Fiscal Yeazs Health Fiscal General Public and Parks and Public Year Government Safe Welfare Recreation Services 1990 $3,516,105 $7,184,337 $1,484,309 $738,341 $3,847,293 1991 3,617,711 7,644,841 2,046,254 748,629 4,126,514 1992 3,184,909 8,054,011 3,857,657 670,214 4,049,770 1993 3,188,999 8,678,863 3,434,463 721,216 4,302,728 1994 3,275,299 9,126,524 4,016,937 894,339 5,659,277 1995 3,243,405 9,233,995 2,455,303 970,084 6,720,880 1996 3,340,732 8,990,888 1,683,177 888,139 7,049,049 1997 3,378,392 9,723,034 1,805,734 887,122 6,842,469 1998 3,454,345 10,362,360 1,757,148 923,430 7,648,048 1999 3,371,246 10,326,120 1,705,099 945,953 7,321,657 *Amounts appear in Schedule A-2 **"Other" includes recreation district tax,contingency,TIF-related payments,pensions , and other fringes. ***"Other Agencies" includes Penobscot County taxes and support to,among others, the Bangor Public Library, local private schools and the Bangor Convention and Visitors Bureau. Continued on Facing Page III - 3 Table 2 Total Debt Other General Fund Education Service Other** Agencies*** Ex�enditures $22,289,738 $1,021,821 $464,004 $1,550,520 $42,096,468 24,847,977 1,150,036 222,777 1,732,847 46,137,586 25,486,072 1,210,420 198,564 1,796,519 48,508,136 25,854,492 1,160,983 213,491 1,671,710 49,226,945 26,871,968 1,454,132 200,436 1,715,417 53,214,329 27,999,220 1,641,046 150,474 1,999,580 54,413,987 28,258,718 1,403,761 45,595 2,046,064 53,706,123 28,934,989 1,364,213 75,238 2,196,959 55,208,150 30,190,919 1,335,405 389,805 2,231,591 58,293,051 31,926,707 1,340,136 131,815 2,391,962 59,460,695 III -4 City of Bangor, Maine General Governmental Expenditures/Other Uses And Revenues/Other Sources, Budgetary Basis* General Fund Only Last Ten Fiscal Yeazs Other Uses Total Appropriations Operating General Fund Fiscal To Transfers Out Total Expenditures Year Fund Balance And Other Other Uses And Uses 1990 - $1,015,603 $1,015,603 $43,112,071 1991 - 787,546 787,546 46,925,132 1992 - 415,232 415,232 48,923,368 1993 $433,112 692,527 1,125,639 50,352,584 1994 - 787,897 787,897 54,002,226 1995 - 865,462 865,462 55,279,449 1996 - 1,871,914 1,871,914 55,578,037 1997 - 2,360,375 2,360,375 57,568,525 1998 - 1,528,803 1,528,803 59,821,854 1999 - 1,640,914 1,640,914 61,101,609 *Amounts appear in Schedule A-2. Continued on Facing Page III - 5 Table 3 Other Sources Excess(Deficiency) Total Of Revenues/Other Appropriations Operating General Fund Sources Over From Transfers In Total Other Revenues Expenditures/ Fund Balance And Other Sources And Sources Other Uses $641,747 $8,000 $649,747 $42,570,331 ($541,740) 276,007 - 276,007 45,325,333 (1,599,799) 818,520 9,300 827,820 50,416,976 1,493,608 - - - 51,362,652 1,010,068 26,328 108,179 134,507 55,246,850 1,244,624 260,000 28,770 288,770 55,886,373 606,924 689,909 76,249 766,158 56,566,929 988,892 1,249,123 377,448 1,626,571 58,138,528 570,003 333,731 357,459 691,190 60,531,734 709,880 362,286 77,903 440,189 62,416,650 1,315,041 III - 6 Table 4 City of Bangor, Maine Assessed and Estimated Market Value Last Ten Fiscal Years Assessed and Estimated Mazket Value* Fiscal Real Personal Percent Year Pronert� Pronert� Total Chan�e 1990 $1,082,126,000 $101,506,000 $1,183,632,000 NA 1991 1,126,289,900 94,536,200 1,220,826,100 3.14% 1992 1,140,049,000 101,506,000 1,241,555,000 1.70 1993 1,162,189,600 103,825,600 1,266,015,200 1.97 1994 1,183,296,900 109,541,200 1,292,838,100 2.12 1995 1,193,466,200 112,324,800 1,305,791,000 1.00 1996 1,201,371,900 139,604,900 1,340,976,800 2.69 1997 1,206,956,900 156,506,600 1,363,463,500 1.68 1998 1,210,414,700 176,756,000 1,387,170,700 1.74 1999 1,219,950,500 188,488,200 1,408,438,700 1.53 * It is City policy to assess at 100%of estimated market value. III - 7 This page left intentionally blank . City of Bangor, Maine Property T�Levies, Collections and Delinquencies* Last Ten Fiscal Years Percent Of Fiscal Gross Tax Net T� Current Net Levy Year LevX** Abatements** L_� Collections** Collected � 1990 $21,071,913 $442,825 $20,629,088 $19,765,915 95.82% 1991 23,097,868 194,635 22,903,233 21,313,338 93.06 1992 26,447,878 180,157 26,267,721 24,316,637 92.57 1993 27,118,624 105,234 27,013,390 25,020,672 92.62 1994 28,549,008 380,322 28,168,686 26,499,976 94.08 1995 30,305,921 323,102 29,982,819 28,250,549 94.22 1996 31,084,237 341,860 30,742,377 29,297,048 95.30 1997 31,437,529 395,775 31,041,754 29,481,717 94.97 1998 32,600,063 364,524 32,235,539 30,805,625 95.56 1999 32,611,689 145,123 32,466,566 31,084,751 95.74 * T'he presentation of these amounts has been changed from previous years. Prior to 1998,cunent collections had included abatements granted during the year. Beginning with fiscal 1998's presentation,abatements have been subtracted from the gross levy to yield a net levy. Thus, only amounts actually collected during the year are considered current collections. To derive the Percent ofNet Levy Collected,amounts collected on a current basis during the year are divided by the Net Tax Levy. The effect of this change is to reduce slightly the Percent of Net Levy Collected in fiscal 1998 and 1999 from 95.61%and 95.76%,respectively. ** Amounts can be found in Schedule G-1. Continued on Facing Page III - 9 Table 5 Ratio Of � Outstanding Ratio of Delinquent Total Total Tax Current Year Current Year Tax Tax Collections Delinquent Delinquencies Collections Collections To Lew Taxes** To Lew $467,573 $20,233,488 98.08% $863,173 4.18% 854,272 22,167,610 96.79 1,589,895 6.94 1,402,235 25,718,872 97.91 1,951,084 7.43 1,994,355 27,015,027 100.01 1,992,718 738 2,024,862 28,524,838 101.26 1,668,710 5.92 1,680,210 29,930,759 99.83 1,732,270 5.78 1,469,986 30,767,034 100.08 1,445,329 4.70 1,570,081 31,051,798 100.03 1,560,037 5.03 1,543,779 32,349,404 100.35 1,429,914 4.44 1,503,187 32,587,938 100.37 1,381,815 4.26 III - 10 Table 6 City of Bangor, Maine Property Tax Rate Components (In Dollars Per Thousand of Assessed Value) Last T'en Fiscal Years General General Fiscal City Fund Debt Penobscot Total Tax Year Government Service Education Coun Mill Rate 1990 $7.61 $0.97 $8.31 $0.86 $17.75 1991 8.19 0.98 � 8.76 0.97 18.90 1992 9.13 0.97 10.22 0.98 21.30 1993 9.57 0.91 10.04 0.88 21.40 1994 9.60 1.13 10.41 0.86 22.00 1995 9.72 1.26 11.21 0.86 23.05 1996 9.32 1.46 11.51 0.86 23.15 1997 9.35 1.34 11:33 0.88 22.90 1998 9.64 1.28 11.57 0.86 23.35 1999 9.68 1.10 12.11 0.92 23.80 III - 11 Table 7 City of Bangor, Maine Principal T�payers June 30, 1999 Percent Cumula- Assessed of tive Firm Ty�e of Business Value Tax Base Percent BANMAK Associates Shopping mall $56,167,400 3.99% 3.99% General Electric* Steam turbine manufacturer 28,036,900 1.99 5.98 Bangor Hydro-Electric Utility 24,466,200 1.74 7.72 Webber Oil Company Fuel distributor 12,216,455 0.87 8.59 Cabrel Company Real estate interests 10,273,200 0.73 9.32 Wal Mart Stores, Inc. Retailer 9,089,848 0.65 9.97 C redit Suisse Leasing Leasing/finance company 7,869,278 0.56 10.53 Fleet Bank of Maine Commercial bank 7,072,800 0.50 11.03 Bangor Airport Mall Trust Shopping mall 7,069,600 0.50 11.53 Stillwater Realty Trust Real estate interests 6 668,400 0.47 12.00 Totals $15_8_93��,�81 12.QQ1a I�A *Net of$31,952,800 of tax increment financing assets III - 12 Table 8 City of Bangor,Maine Computation of Legal Debt Margin June 30, 1999 Total State Valuation $1,417,950,000 Debt Limitation: 15%of State Valuation $212,692,500 Debt Applicable to Debt Limitation: Bonded General Obli ation Debt As a Percent of Le al Maximum Dollar State � P�Centaee Am2q11t AmQ.un1 MaximLm ValuatiQII Municipal 7.50% $106,346,250 $18,828,646 17.71% 133% School 10.00 141,795,000 11,950,135 8.43 0.84 Sewer 7.50 106,346,250 32,112�035 30.20 2 26 Total Bonded Debt Applicable To Debt Limit: $42��Lfi 2��J°LQ 4.44% Margin for Additional Borrowing: $149__891�z84 III- 13 � Table 9 City of Bangor, Maine Ratio of Net Bonded General Obligation Debt to Assessed Value And Net Bonded General Obligation Debt Per Capita Last Ten Fiscal Years Ratio of Net Bonded Debt Assessed Net Bonded To Assessed Per Fis �LY�at EQ�ulaiio�* 1�alu� ('�O Debt** ya1u� � � _ 1990 33,176 $1,183,629,000 $22,154,320 1.87% $667.78 1991 33;301 1,220,826,100 20,541,297 1.68 616.84 1992 32,516 1,241,555,000 21,075,758 1.70 648.17 1993 32,027 1,266,015,200 25,421,593 2.01 793.76 1994 32,437 1,292,838,100 27,033,359 2.09 833.41 1995 32,570 1,305,791,000 24,198,270 1.85 742.95 1996 31,849 1,340,976,800 24,937,760 1.86 782.99 1997 31,479 1,363,463,500 25,763,268 1.89 �818.43 1998 31,134 1,387,170,700 28,261,855 2.04 907.74 1999 30,783 1,408,438,700 30,778,781 2.19 999.87 * Source:Maine Department of Human Services(1989 through 1994). Maine Department of Human Services Maine State Planning Office and City of Bangor(1995 through 1999). **Net Bonded General Obligation Debt consists of all non-self supporting general obligation debt,and excludes all sewer. At year end FY 99,these excluded amounts aggregated to$32,112,035. III - 14 Table 10 City of Bangor, Maine Ratio of Annual Debt Service Expenditures For General Fund, General Obligation Bonded Debt To Total General Fund Expenditures Last Ten Fiscal Years Ratio of Debt Debt Service Ex enditures Total General Service to Fund General Fund ��Ye� p�� In r st TQt�1 F.x ndi e�* FxnPndi �r s 1990 $1,039,852 $959,567 $1,999,419 $42,096,468 4.75% � 1991 1,460,110 1,087,678 2,547,788 46,137,586 5.52 1992 1,552,596 1,005,862 2,558,458 48,508,136 5.27 1993 1,541,233 1,177,919 2,719,152 49,226,945 5.52 1994 2,209,846 1,235,184 3,445,030 53,214,329 6.47 1995 2,358,643 1,085,414 3,444,057 54,413,987 6.33 1996 2,180,072 948,868 3,128,940 53,706,123 5.83 1997 2,039,162 852,963 2,892,125 55,208,150 5.24 1998 2,032,188 1,051,394 3,083,582 58,293,051 5.29 1999 2,091,933 1,142,193 3,234,126 59,460,695 5.44 *Budget basis, Schedule A-2 III - 15 Table 11 City of Bangor, Maine Computation of Direct and Overlapping Debt June 30, 1999 Percentage Amount Total Debt Applicable Applicable 9�tsfandin� T_Q_B�n r T��n Direct Debt� City of Bangor $67,830,816 100.00% $67,830,816 nverlaDnin ebt: Penobscot County 3,160,599 23.42 740,212 Maine Vocational Region 4 220,000 33.5 73,g9g Total Debt $71,211.415 $68,�44,926 III - 16 Table 12 City of Bangor, Maine Direct and Overlapping Debt Last Ten Fiscal Years � Overla in Debt Direct and Overla in Debt Direct Debt Bangor Maine As %of Fiscal City of Penobscot Recreation Vocational Assessed Per S's� B�ngor � I?isiric� Re ' ToSal Y_alu� �a � 1990 $33,695,000 $2,072,915 $400,000 - $36,167,915 3.06% $1,090.18 1991 50,405,000 1,760,796 320,000 - 52,485,796 430 1,576.10 1992 55,860,000 1,663,253 240,000 - 57,763,253 4.65 1,776.46 1993 64,027,090 1,598,481 160,000 517,286 66,302,857 5.24 2,070.22 1994 67,959,000 760,461 80,000 527,096 69,326,55'7 5.36 2,137.27 1995 63,144,763 696,911 - 369,490 64,211,164 4.92 1,971.46 1996 64,319,213 1,007,864 - 295,592 65,622,669 4.89 2,060.40 1997 64,396,280 811,530 - 221,693 65,429,503 4.80 2,078.52 1998 66,555,452 806,241 - 147,796 67,509,489 4.87 2,168.32 1999 67,830,816 740,212 - 73,898 68,644,926 4.87 2,229.98 III - 17 Table 13 City of Bangor,Maine Revenue Bond Coverage* ' Last Ten Fiscal Years Net Revenue Calculation Net Revenue Debt Service Re uirements Fiscal Gross Operating Available for Year evenues Expenses Debt Service Princi�al Interest Total Covera�e 1990-199 No Revenue Bond Indebtedness NA 1993 $14,888,630 $10,962,918 $3,925,712 - $176,126 $176,126 22.29 1994 12,876,641 9,873,956 3,002,685 - 352,253 352,253 8.52 1995 11,853,307 9,861,003 1,992,304 - 352,252 352,252 5.66 1996 9,715,257 7,336,358 2,378,899 190,000 348,073 538,073 4.42 1997 9,932,620 7,190,091 2,742,529 195,000 339,311 534,311 5.13 1998 10,733,716 7,368,848 3,364,868 205,000 329,603 534,603 6.29 1999 9,769,117 7,059,474 2,709,643 220,000 318,758 538,758 5.03 *Revenue debt consists solely of a 1992 limited obligation airport bond issue. III- 18 Table 14 City of Bangor,Maine Debt Service Requirements to Maturity All Bonded Debt , June 30, 1999 Limited Obligation, Total Debt Service General Obli ation Debt Revenue Debt Re uirements Fiscal Year Inter.��.t PSll1C1p�1 Int_�r_e.sS P�'nci�al Inte�t Prin�i 2000 $2,811,107 $5,060,097 $306,770 $230,000 $3,117,877 $5,290,097 2001 2,559,671 4,592,892 293,643 245,000 2,853,314 4,837,892 2002 2,308,615 6,427,001 279,308 260,000 2,587,922 6,687,001 2003 2,080,906 4,017,005 263,789 275,000 2,344,695 4,292,005 2004 1,883,951 4,091,456 247,045 290,000 2,130,996 4,381,456 2005 1,695,731 3,874,537 228,890 310,000 1,924,621 4,184,537 2006 1,517,817 3,876,766 208,958 330,000 1,726,775 4,206,766 2007 1,336,023 3,879,333 187,368 350,000 1,523,390 4,229,333 2008 1,158,832 3,892,258 164,508 370,000 1,323,340 4,262,258 2009 976,926 3,800,558 139,528 395,000 1,116,454 4,195,558 Thereafter 3.086,831 19,37g,�15 263.13� 1,885,000 3 34 970 21,263,915 Totals $21.416,411 $62_890,�1f $2_582_946 $4_940,� ��,999354 $67830�$16 III- 19 Table 15 City of Bangor, Maine Self Supporting and Tax Supported General Obligation Debt June 30, 1999 �en�r�l_Qbligation Debt Su�gor�_ Pro rtv Taac Revenues Percent of Am�unt Total General Fund $9,601,549 15.27% Education 11,950,135 19.00 Non-Self Supporting Enterprise Fund 9,227,097 14.67 TQt�1 $ �,7�1 48.94% �el_f-St�o in_ T�neraLQbli�*ration Debt Sewer Fund $32,112,035 51.06% TQtal $32..1.12_,� 51 Q610 TataL�'ien�raL0l�ligatifln4�ht $62,89_0.,.816 19�Q01Q III - 20 Table 16 City of Bangor, Maine Defined Benefit Pension Plan City and Employee Rates and Contributions Last Ten Fiscal Years Ci Contributions For � Normal Unfunded Covered Retirement Liability Employee Total Fiscal Year Payroll Costs (IiJUALI Contributions Contributions 1990 $15,156,868 $1,462,638 $1,503,561 $985,196 $3,951,395 1991 15,731,400 1,683,260 1,667,528 1,022,541 4,373,329 1992 16,223,381 1,641,806 1,781,327 1,054,520 4,477,653 1993 16,875,589 1,724,685 2,018,320 1,096,913 4,839,919 1994 17,578,929 1,778,988 1,988,177 1,142,630 4,909,795 1995 17,944,029 1,805,169 1,920,011 1,166,362 4,891,542 1996 18,302,798 1,830,280 1,800,995 1,189,682 4,820,957 1997 18,533,665 1,939,735 1,902,000 1,204,688 5,046,424 1998 18,210,397 1,922,377 1,882,104 1,179,511 4,983,992 1999 18,504,182 1,357,276 1,995,036 1,204,076 4,556,388 III -21 Table 17 City of Bangor,Maine Defined Benefit Pension Plan Unfunded Liability Amortization Fiscal Beginning Annual Ending Year Liabili a ment Liabili 2000 $31,153,926 $2,076,249 $31,488,538 2001 31,488,538 2,138,537 31,785,189 2002 31,785,189 2,202,693 32,038,898 2003 32,038,898 2,268,774 32,244,232 2004 32,244,232 2,336,837 32,395,258 2005 32,395,258 2,406,942 32,485,511 2006 32,485,511 2,479,150 32,507,944 2007 32,507,944 2,553,525 32,454,878 2008 32,454,878 2,630,130 32,317,957 2009 32,317,957 2,709,034 32,088,082 2010-2017 32,088,082 24,812,334 25,514,196 2018-2026 25,514,196 35 0,9 9,142 - Total payments �84,523,347 III -22 Table 18 Ciiy of Bangor,Maine Public School Enrollment . Last Ten School Years Grades � School Other Total Year K=3 4=5 6_8 -�12 Enrollment Enrollment 1990 1,511 635 808 1,085 139 4,178 1991 1,497 639 873 989 148 4,146 1992 1,440 617 906 919 181 4,063 1993 1,456 650 946 904 205 4,161 1994 1,387 676 938 965 173 4,139 1995 1,433 640 932 1,054 167 4,226 1996 1,361 617 892 1,056 247 4,173 1997 1,381 651 933 1,169 260 4,394 1998 1,322 645 920 1,302 219 4,408 1999 1,318 653 924 1,248 234 4,377 Source: Maine Department of Education III -23 Table 19 City of Bangor, Maine Educational Attainment,Persons Age 18 and Over Calendar 1998 Penobscot State of Ban�or Coun Maine Less than ninth grade 4.1% 5.1% 5.9% Ninth to twelfth grade, no diploma 8.5 9.9 9.9 High school, including equivalency 23.6 27.7 27.9 Some college 18.1 16.1 13.5 Associate's degree 6.9 5.2 5.0 Bachelor's degree 11.3 7.8 8.8 Graduate/professional degree 5.5 3.9 4.0 Source: U.S. Census Bureau III - 24 Bangor, Maine MSA Employment Composition Last Ten Calendar Years Manufacturin Total Non- Transportation Calendar Farm Durable Non-Durable And Public Year Employment Goods Goods Construction Utilities 1989 50,310 1,890 3,340 2,280 3,290 1990 49,870 1,800 3,150 2,030 3,060 1991 48,020 1,770 2,920 1,640 3,190 1992 47,820 1,610 2,870 1,660 2,920 1993 49,890 1,770 2,950 1,760 2,970 1994 50,300 1,800 2,580 1,710 2,940 1995 51,040 1,820 2,580 1,700 2,990 1996 51,300 1,850 2,440 1,930 3,060 1997 52,335 1,929 2,337 1,969 3,007 1998 53,480 1,956 2,395 2,018 3,080 Source: Maine State Department of Labor , Continued on facing page III -25 ' Table 20 Non-Manufacturin Finance, Wholesale/ Insurance, Retail Trade Real Estate Services Government 13,440 1,900 12,400 11,770 13,25 0 1,770 12,680 12,13 0 12,550 1,670 12,710 11,570 12,580 1,660 13,050 11,470 13,340 1,540 13,970 11,590 13,580 1,540 14,770 11,380 13,990 1,640 15,080 11,240 13,930 1,660 15,480 10,950 13,707 1,834 15,935 11,617 13,977 1,852 16,434 11,768 III - 26 Table 21 City of Bangor, Maine Employment Data Last Ten Calendar Years Unem lo ment Calendar Year Labor Farce Em�loyment Number Percenta�e 1989 16,434 15,833 601 3.66% 1990 17,525 16,541 984 5.61 1991 17,681 16,280 1,401 7.92 1992 17,464 16,288 1,176 6.73 1993 17,402 16,017 1,385 7.96 1994 16,558 15,321 1,237 7.47 1995 17,333 16,342 991 5.72 1996 17,717 16,916 801 4.52 1997 17,828 16,972 856 4.80 1998 17,477 16,847 630 3.60 Source: Maine State Department of Labor III -27 bTa le 22 Bangor,Maine Major Employers,Bangor and Bangor MSA Calendar 1998 anls �plover Descrintion Employees ocat' n 1 Eastem Maine Medical Regional health care 2,719 Bangor Center center 2 University of Maine Main campus,state 2,391 Orono university system 3 Bangor Mall Shopping complex 2,267 Bangor 4 City of Bangor Municipal government 1,628 Bangor 5 United States Postal Postal Service 1,500 Bangor Service 6 Community Health and Community social service 813 Bangor Counseling Services provider 7 St.Joseph Hospital Health care center 807 Bangor 8 Shop& Save Grocery chain 800 Bangor Supermarkets 9 Fort James Paper Corp. Pulp and tissue producer 625 Old Town 10 Webber Energy Co. Fuel wholesaler/distributor 500 Bangor 11 Eastern Fine Paper,Inc. Paper producer 477 Brewer 12 General Electric Corp. Turbine manufacturer 444 Bangor 13 City of Brewer Municipal government 438 Brewer 14 Bangor Mental Health Regional residentital 435 Bangor Institute mental health center 15 Acadia Hospital Residential substance 409 Bangor abuse treatment facility 16 Bell Atlantic Communications company 400 Bangor 17 R.H.Foster,Inc. Fuel wholesaler/distributor 360 Hampden 18 Irving Oil Corp. Fuel wholesaleddistributor 350 Bangor 19 MSAD 22 School administrative 350 Hampden, district Newburgh, Winterport 20 MBNA Telemarketing Credit card telemarketer 300 Orono Systems III-28 Table 23 City of Bangor, Maine Residential and Commercial Building Permits And Bank Deposits Last Ten Calendar Years (Dollar Amounts in Thousands) Buildin Permits Residential Non-Residential Totals Calendar B� Year Units Value Units Value Units Value De�osits* 1989 540 $8,669.8 193 $32,359.3 733 $41,029.1 �<>:; $1,152,290.0 sx.: 1990 439 9,401.5 179 9,947.8 618 19,349.3 �;��: 1,064,208.0 , 1991 412 4,789.6 166 46,431.0 578 51,220.6 :;;:; 1,033,098.0 �>� �.:.; 1992 377 4,700.7 194 30,264.6 571 34,965.3 ;<:`::, 826,716.0 1993 371 5,718.7 253 10,968.4 624 16,687.1 ;:;:; 717,982.0 1994 289 4,019.7 274 21,068.0 563 25,087.7 ;:::;: 705,589.0 1995 279 3,203.0 198 17,392.7 477 20,595.7 :;';:;:: 749,352.0 � 1996 283 4,013.8 192 18,773.8 475 22,787.6 :::::; 762,181.0 1997 303 2,966.9 222 29,368.5 525 32,335.4 <;;; 792,341.8 1998 284 3,149.7 223 37,984.6 507 41,134.3 808,188.7 * Source: Maine Department of Banking III -29 I Table 24 City of Bangor, Maine Ten Largest Current Construction Projects June 30, 1999 Estimated Completion Value Pro�ect Descri�tion Date 0� OO,s� 1 Eastern Maine Medical Center/ New construction � Dec-99 $7,078.8 Eastern Maine Healthcare 2 Freeses Building Renovation Dec-99 3,063.3 3 QV Realty New construction Jul-99 2,793.5 4 Phillips-Strickland Home New construction Apr-2000 2,348.8 5 Unicel New construction Oct-99 2,107.6 6 Vision Care of Maine New construction Dec-99 2,085.2 7 Varney, Inc. New construction Sep-99 1,658.9 . 8 Circuit City, Inc. New construction Nov-99 1,617.6 � 9 Berlin City New construction Jul-99 1,516.2 10 USDA New construction Aug-99 1 450.3 Totals �25=,.720 2 III - 30 r� City of Bangor,Maine Various Demographic Data 1990 Census A e Distribution Household Income Age Category_ Number Percent CategorX Number Percent <18 7,294 21.99% <$15,000 3,740 27.97% 18-29 8,058 24.29 $15,000-$29,999 4,050 30.28 30-44 7,792 23.49 $30,000-$44,999 2,859 21.38 45-54 2,885 8.70 $45,000-$59,999 1,283 9.59 55-64 2,624 7.91 $60,000-$74,999 629 4.70 >64 4 523 13.63 >$75,000 812 6.07 Totals �� 1QQ�9�� Totals 1�,3� 100.00% Median NA Median $24,6Z4 Source:U.S. Census Bureau Continued on facing page _. , III - 31 Z� - III p�9L$ ueipay� °�0 6QT Z9 SI�;�.L Z I'� �T 000`OOZ$< Li'Z L6 00`OOZ$-000`SLI$ t�S'£ 8Si 66`�LI$-000`OSi$ 8S'S 6tiZ 66`6�i$-000`SZi$ L6'6 Sbb 66`t�Z I$-000`00 t$ S�'8Z S9Z`i 666`66$'000`SL$ OL'L£ Z89`T 666`i�L$-000`OS$ L8'8 96£ 666`6b$-000`SZ$ %69'0 I£ 000`SZ$> �ua�.�ad iaqumN o a�� sanj�A t,nsnoH pat n��p-zaunnp SZ aIQ�.L � Table 26 City of Bangor, Maine Taxable Retail Sales Last Ten Calendar Years (000's) Taxable Retail Sales in: Ban or as Percent of: Calendar City of Penobscot State of Year Bangor Coun Maine Coun State 1989 $668,139 $1,170,467 $9,133,673 57.08% 7.32% 1990 644,993 1,137,309 8,930,108 56.71 7.22 1991 620,521 1,112,986 8,760,684 55.75 7.08 1992 670,388 1,178,162 9,336,655 56.90 7.18 1993 712,294 1,217,741 9,815,702 58.49 7.26 1994 725,513 1,241,600 10,162,703 58.43 7.14 1995 731,195 1,269,502 10,414,283 57.60 7.02 1996 784,965 1,333,801 10,915,108 58.85 7.19 1997 816,298 1,379,967 11,323,937 59.15 721 1998 878,198 1,471,961 12,311,991 59.66 7.13 Source: Maine State Planning Office III - 33 Table 2 City of Bangor, Maine Miscellaneous Data June 30, 1999 City Em�loyees Full time 525 Part time 413 Public Education Number of schools 10 Number of teachers 368 Number of students 4,377 Police Protection Number of officers 70 Number of civilian employees 11 Number of stations 1 Number of vehicles 36 Fire Protection Number of fire fighters 88 Number of civilian employees 14 Number of stations 3 Number of vehicles 21 Insurance Service Organization fire protection rating 2 Parks and Recreation Number of parks 50 Acres of parkland 600 Indoor ice arena 1 Semi-pro baseball stadium 1 Public golf courses 1.5 Public swimming pools 2 Sewers Miles of sanitary sewers 115 Miles of storm sewers 35 Miles of combined sewers 40 Public Library Number of branches 1 Number of volumes 450,000 III - 34